Gold has been steadily losing value since the end of January 2015. Following several days correction to an upside, today the precious metal has fallen sharply against the Dollar. Obviously, there is not much interest for the safe haven asset at the moment and it is too early to talk about growth in demand.
On the technical front, Looking at the 4H chart, a breakout level of an uptrend channel combined with the Fibonacci, provides some interesting areas of support and resistance. While gold had a clean bounce of the resistance at 1236, there was no contact with the strong physiological as well as technical support level (23.6%) at 1200. Absence of the strong ground below can lead to broader downside pressure, at least in the near term. Having said that, MACD showing bullish divergence, signalling for a possible coming correction.
All in all, GOLD seems open for more negative trading which might extend to 1200-1990 area. In order to start talking about growth, the key resistance at 1238 has to be taken out. Therefore going with the trend in the short run could be the most profitable approach to trade this asset.
Support: 1209.22, 1199.73, 1190.93, 1166.43
Resistance: 1220.33, 1227.57, 1238.65, 1253.35
On the technical front, Looking at the 4H chart, a breakout level of an uptrend channel combined with the Fibonacci, provides some interesting areas of support and resistance. While gold had a clean bounce of the resistance at 1236, there was no contact with the strong physiological as well as technical support level (23.6%) at 1200. Absence of the strong ground below can lead to broader downside pressure, at least in the near term. Having said that, MACD showing bullish divergence, signalling for a possible coming correction.
All in all, GOLD seems open for more negative trading which might extend to 1200-1990 area. In order to start talking about growth, the key resistance at 1238 has to be taken out. Therefore going with the trend in the short run could be the most profitable approach to trade this asset.
Support: 1209.22, 1199.73, 1190.93, 1166.43
Resistance: 1220.33, 1227.57, 1238.65, 1253.35
