Blue rectangle- support
Black lines- Fibonacci retracements
Gold price is trading around $1,673. Price tested once again the horizontal support around $1,655-60 and is now bouncing off of it. Bulls continue to defend the horizontal support level. This price action confirms the importance of the $1,655-60 support area. If broken we should expect Gold to plummet towards $1,600 and lower. Resistance is found around the recent highs at $1,779. The 38% Fibonacci retracement level at $1,684 is a possible target but if Dollar weakens and we should expect price to reach even the 61.8% Fibonacci level around $1,700.
