FX.co ★ Technical analysis of gold for November 17, 2016

Gold price is moving higher early today as the US dollar weakens. Gold price is at very important price levels that justify a bounce if not a bigger reversal for the start of the next leg up. My long-term reversal zone is $1,220-$1,170 and we already have touched a part of this area.

Red rectangles - resistance

Gold price is below the Ichimoku cloud. The daily trend is bearish as long as price is below $1,307. Resistance levels are $1,254, at $1,1273, and at $1,307 as the most important one. Oscillators are oversold and turning upwards for Gold. Gold should bounce towards at least $1,254 and most probably towards cloud resistance.

My long-term view remains bullish as I believe Gold could very well have ended wave 2 down or at least is at its final stages. Gold could push towards the 61.8% Fibonacci retracement but only after a short-term bounce. Traders should be looking for long positions as the next big move will be to the upside.