FX.co ★ Technical analysis of gold for March 16, 2017

Gold held support yesterday and broke above the short-term trading range. The price breached the first short-term resistance at $1,211 and moved directly to $1,220 which was our first target. However, gold stays below resistance. My longer-term view remains bullish.

Gold price has reached the 50% Fibonacci retracement of the recent decline from the February highs. Currently, the support lies at $1,210. Breaking below it will increase the chances of

moving lower to $1,194 and then towards $1,170-60.

Gold daily candle has bounced off the daily cloud support exactly as we wanted and expected. The price is now testing important daily cloud resistance around $1,230. Gold needs to make higher highs and higher lows and hold above $1,194. Otherwise, the correction will be deeper and could reach even $1,160.