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Gold prices recover, strong bearish pressure likely- short around 1085 with targets 1070/1068, SL 1090

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

 

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