Gold rallies from key Fibonacci support
Yesterday saw gold break through a cluster of support trendlines, only to find support from the 76.4% Fibonacci retracement. The long lower wick indicates a possible bottom in place, an idea which will likely be tested today. As such, the ability to retain and build upon those gains will be crucial today.
The creation of a new higher low and closed hourly candle above the overnight high of $1259 would provide us with expectations of a strong move higher in the coming trading days. Much will also be down to the strength of the US dollar which has been negatively affecting this market over the past few days.
Look out for potential trendline support and the ability to break through $1259 as a strong bullish signal.