17.03.201710:03 Forex Analysis & Reviews: Technical analysis of gold for March 17, 2017

Long-term review

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Gold price reached the top of the resistance area yesterday around $1,235 and is pulling back. This pullback is very critical and will determine if we are going to see $1,160 or the recent low is an important long-term low.

Blue rectangle - support

Gold price tried to break above the Kumo (cloud) resistance but got rejected on the 4-hour chart. This will be an important bullish sign. We need to be patient for now. I expect this support area to be tested. If prices break below it, then the bearish scenario for a push lower towards $1,180-60 will have increased chances. If support holds, then we could see another move higher towards $1,280.

On a daily basis Gold price has stopped its rise right on the daily kijun-sen. Price could back test the tenkan-sen (red line indicator) and the cloud support at $1,215-12 area and then start its next upward move. Oscillators point higher so for now we consider the pullbacks as buying opportunities. If the $1,194 low is broken, we should expect a sharp sell off towards $1,160.

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