Gold has been trading within the Ichimoku cloud after the rebound on the bullish crossover of the 20-and 40-simple moving averages (SMAs) around 1290.45 in the 4-hour chart. Looking at momentum indicators, the RSI is strengthening momentum above the 50 level as it is sloping upwards, while the MACD is trying to surpass the trigger line in the positive zone.
Immediate resistance would likely come from the 1300 – 1302 zone as the price successfully climbed above the 23.6% Fibonacci retracement level of the downleg from 1346.60 to 1280.63, near 1296.26. Higher up, the 38.2% Fibonacci of 1305.90 and the 50.0% Fibonacci of 1313.63 could be the next targets to look for.
On the other side, if the price continues the downfall, support would initially come from the1290.45 strong region, which overlaps with the flat blue Kijun-sen line and the 40-SMA. Slipping below this area, the yellow metal could hit the 6-week low of 1280.63.
In the more medium-term picture, the price is still endorsing the bullish view following the upward reversal at the 19-month low of 1160.