XAU/USD approaching resistance, potential drop!

XAUUSD is approaching our first resistance at 1307.84 (61.8% Fibonacci retracement , 61.8% Fibonacci extension ) where a strong drop might occur below this level pushing price down to our major support at 1297.82 (38.2% Fibonacci retracement , 100% Fibonacci extension ). Stochastic (89,5,3) is also approaching resistance and seeing a bearish divergence where we might see a corresponding drop in price. Trading CFDs on margin carries high risk. Losses can exceed the initial investment so please ensure you fully understand the risks.

Analysis are provided by InstaForex