Gold touches the first target – Analysis - 31-08-2016

Gold price managed to touch our first main waited target at 1310.65 and fluctuates near it, while the negative pressure provided by the EMA50 still valid, which supports the continuation of the bearish bias to test the next support at 1297.75, being aware that it is important to monitor the price behavior when reaching this level, as breaking it represents the key to extend gold price losses to reach 1249.95 direct.

Stochastic shows positive signals that might assist to push the price for recovery attempts and stop the current negative pressure, taking into consideration that breaching 1327.90 followed by 1357.50 levels will lead the price to regain its main bullish track and confirm stopping the current bearish correction.

Expected trading range for today is between 1297.75 support and 1327.90 resistance.

Expected trend for today: Bearish