Gold prices recovered some ground in the early European session inching higher from 1073 levels upto 1081. Short-term bounce is expected to be limited as the commodity is likely to find strong resistance around 1085 levels.
- It is set to come under strong bearish pressure in the coming days as the traders expect the FED to raise the interest rate in the next FOMC meetings.
- To the upside, the strong resistance can be seen at 1085, a break above this level would expose the commodity towards 1089 levels.
- To the downside immediate support can be seen at 1078, a break below at this level will open the door towards next level at 1073.
Recommendation: Go short around 1085, targets around 1070/1068, SL 1090
Support levels: S1-1078, S2-1073 S3-1070
Resistance levels: R1-1081, R2-1085, R3-1089
