Technical outlook and chart setups:
Gold dropped lower towards $1,156.00 before pulling sharply back into $1,170.00. As we can see here, the metal is trading around $1,166.00/67.00, which is also converging with the past support turned resistance and a fibonacci 0.382 resistance of the drop from $1,188.00 to $1,156.00 levels respectively. A bearish reversal would warrant a re-test of $1,156.00 here, while a break over the resistance line would challenge $1,180.00. It is recommended to remain long on positions taken earlier with risk at $1,150.00 but initiate fresh positions only after a break of $1,180.00. Immediate support is seen at $1,150.00 and lower while resistance is seen at $1,180.00.
Remain long for now, stop is at $1,150.00, a target is open.
The material has been provided by InstaForex Company – www.instaforex.com