Gold approaches the second target – Analysis - 16-05-2018

Gold price confirmed breaking 1301.20 level after closing the daily candlestick below it, to approach the next target at 1285.90, which represents 61.8% Fibonacci correction level for the rise from 1236.41 to 1365.97, which means that breaking this level will extend Gold price losses to reach 1267.00 as a next station.

In general, we suggest the continuation of the negative pressure domination on the intraday and short term basis unless the price managed to breach 1301.20 level and hold above it, supported by the EMA50 that pushes the price downwards, noting that breaching the last level will lead the price to start recovery attempts that target 1316.48 followed by 1335.40 levels initially.

Expected trading range for today is between 1280.00 support and 1305.00 resistance.

Expected trend for today: Bearish