Technical outlook and chart setups:
Gold dropped lower to the levels of 1,127.00 as we had expected, after reversing from $1,170.00 earlier. The metal responded to its fibonacci 0.618 resistance and is expected to drift lower towards $1,030.00 in coming sessions. It is hence recommended to continue holding short positions now with risk at $1,180.00. Immediate support is seen at $1,110.00 followed by $1,090.00, $1,075.00, and lower while resistance is seen at $1,175.00 followed by $1,200.00, $1,230.00, and higher.
Remain short for now, stop is at $1,180.00, a target is open.
The material has been provided by InstaForex Company – www.instaforex.com