Technical outlook:
Gold is retracing its earlier drop between $1,747 and $1,659 levels. As seen on the hourly chart , the yellow metal is testing just above the fibonacci 0.786 retracement of earlier drop. Furthermore, a resistance trend line connecting $1,747 and $1,738 levels is also being tested at this point in writing. Ideally, a bearish reversal is expected from current price action, which could drag the yellow metal lower towards $,1630 and further. Only a push above $1,747 would be a matter of concern for bears and delay matters further. Immediate price resistance is seen towards $1,738, while support is at $1,640 respectively. Bears would remain poised to push lower and target below $1,640 levels in the short term. The bottom line is that prices should stay below $1,747 levels, for bears to remain in control.
Trading plan:
Remain short, stop at $1,747, target is open.
Good luck!
