Gold price continues lower towards $1,300 and is expected to break below it and reach $1,290-80 support area. The decline in Gold is getting oversold and at least for a short-term bounce there are many good chances.

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Black line -resistance trend line

Red line – support trend line

Green rectangle – support area

Gold price has broken through the green rectangle support area as we expected and is heading towards $1,290-80 support trend line. Oversold oscillators provide a warning for Gold bears. With NFP numbers announced tomorrow I expect the bullish reversal to happen then. Short-term support is at $1,280-90 and resistance at $1,318.

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Blue lines – bullish channel

As expected price is heading towards the lower blue boundary and the yellow weekly kijun-sen indicator. This target was given once price broke down below the red tenkan-sen indicator. Short-term trend is bearish. Critical support is around $1,280 area.

The material has been provided by InstaForex Company – www.instaforex.com

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