Technical Analysis: Gold bulls need confirmation to stay above 23.6% Fibonacci
With the recent risk recovery, gold prices have been forming a lower high pattern, portrayed by the short-term descending trend line, off-late. However, the bullion prices have been above 23.6% Fibonacci retracement of its run-up from November-February run-up. As a result, buyers will wait for the pair upside break of $1653 resistance line before taking fresh long entries. In doing so, they will target the recent high near $1,690 as an intermediate halt during the rise to 61.8% FE level near $1713.
Meanwhile, the safe-haven's declines below 23.6% Fibonacci retracement level of $1631 can take rest on two-month-old horizontal support near $1611. During the quote's further weakness beneath $1611, $1600 and 38.2% Fibonacci retracement near $1595 can please the bears ahead of challenging them with a 50-day SMA level of $1576.