Gold weakness came as we expected but there is still no confirmation that the short-term top is in. A break below $1,195-97 will confirm the correction has started. Gold is expected to reach at least $1,180 as a pullback and retracement of the rise from $1,122.
Blue line – bearish divergence
Gold price is testing Ichimoku cloud support. A break below short-term support of $1,195-97 will result in a deeper pullback towards $1,180 where we find the 38% Fibonacci retracement of the entire rise from $1,122. Resistance is at $1,220 and a new high, if it comes, is expected to be faded.
Gold price is showing rejection signs at the lower cloud boundary as we expected for so long. This rejection is expected to push price towards $1,180 or even $1,160 before the next big move up starts.The material has been provided by InstaForex Company – www.instaforex.com
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