Gold has been trading downwards as we expected. The price tested the key short-term support at the $1.281.00. Gold is in decision phase and at the key support.
The Gold reached our downward target at $1.281.00 from the previous analysis and it is at decision level. ADX reading is below 20 level and this is sign that the trend is weak, so you should be careful at this point. Only if you see clean breakout of the $1.280.83 and pick up in the momentum you should watch for more selling and potential testing of $1.258.00. Very probable scenario can be that price go sideways for few sessions in waiting for next big momentum. Buying is also risky at this stage due to no big signs of reversal yet.
Trading recommendation: We closed our long our sell position on the Gold with a decent profit. We are neutral now but we are awaiting potential breakout of $1.280.83 to confirm further downward continuation and potential test of $1.258.00. To open sell position watch for breakout of $1.280.83.
The material has been provided by InstaForex Company - www.instaforex.com