Technical outlook and chart setups:
Gold seems to have completed its counter trend rally last week after hitting its trend-line resistance around $1,170.00 as depicted here. Please also note that the fibonacci 0.618 resistance levels, of the drop from $1,206.00 to $1,075.00 levels respectively, has also been hit and prices have reacted well there. It is hence recommended to remain short with risk above $1,206.00 for now. Immediate resistance is seen at $1,170.00 (interim) followed by $1,206.00, $1,230.00, and higher, while support is seen at $1,100.00 followed by $1,075.00 and lower respectively.
Remain short for now, stop at $1,206.00, a target is open.
The material has been provided by InstaForex Company – www.instaforex.com