Technical outlook and chart setups:
1. Gold rallies to test recent swing highs at $1,354.00/55.00. A break here would push further and challenge $1,361.00. For now it is recommended to continue holding short positions, risk remains at $1,359.50.
2. Immediate resistance is at $1,361.00, followed by $1,375.00 and higher up, while supports are spread through $1,320.00, followed by $1,307.00, $1,280.00/70.00, $1,230.00/20.00 and lower respectively.
3. The structure reveals that the metal is testing the highs after producing an engulfing bearish candle earlier. A break past $1,361.00 should push prices through $1,375.00; while a failure would bring back bears into control.
Trading recommendations:
Remain short, stop is at $1,359.50, target is open.
Good luck!
