- The yellow metal initially inched higher in the early European session, but rebound in the dollar limited the upside for the metal, after the release of positive US goods trade balance data from the US market.
- Gold is likely to come under pressure as the dollar is set to strengthen across the board due to recent US interest rate hike.
- Currently the commodity broken support at 1069 and is moving downwards to test next support level located at 1066.
- To the upside, the strong resistance can be seen 1071, a break above this level would expose the commodity towards 1074levels.
- To the downside immediate support can be seen at 1066, a break below at this level will open the door towards 1058 levels.Recommendation: Go short around 1068, targets around 1061/1058, SL 1074Support levels: S1-1066, S2-1061, S3-1058Resistance levels: R1-1069, R2-1071, R3-1074
The material has been provided by InstaForex Company – www.instaforex.com