FX.co ★ Technical analysis of XAU/USD for October 24, 2016

XAU/USD is still expected to fall lower after breaking 161.8% Fibs applied to the last corrective wave where downtrend trendline was rejected.

After the breakout, gold rejected 161.% Fibs and can move lower. At the same time, further consolidation for a short term is possible.

Consider selling gold while the price is near $1,270, targeting either 261.8% ($1,225) or 361.8% Fibs ($1,177). The stop loss should be just above $1,300 resistance level.

Support: $1,225, 1,177

Resistance: $1,273, 1,303