XAUUSD (1239.59): Gold prices continued to ease lower as price action was seen falling below the 1242.25 handle. The close below this level could trigger further declines with a potential eventual test toward the 1200 mark. To the upside, gold prices will need to post a strong recovery above 1247 in order to confirm any signs of a recovery in the near term. The Stochastics oscillator continues to remain moving in the oversold level which could potentially trigger a short squeeze at the current levels. Resistance at 1263 remains the upside target in the near term.
