FxWirePro: Gold downside capped by 10-day MA,any major movement only after Fed policy

Gold recovered more than $10 from low of $1332 made yesterday. Markets are trading in narrow range and any major movement can be seen only after Fed policy meeting. The central bank is expected to cut interest rates by 25bpbs. According to the CME FedWatch Tool there is 20.8% probability of 25bpbs rate cut and 79.2% feel that Central bank will keep rates unchanged. It is currently trading around $1346.65.

 US Dollar Index -Intra day Trend weak. US Dollar index is trading slightly weak after recovering till 97.60 level.The near term intraday trend line resistance is around 97.65 and violation above targets 98/98.40.It is currently trading around 97.43.

 US 10 year yield- Overall trend negative. It continues to trade weak and lost nearly 2% from yesterday’s high.The yield hits 2.05% on Jun 7th lowest since Sep 2017. It is currently trading around 2.07%.

 S&P500: Intraday trend - bullish.It has recovered more than 1% from low of 2866.The near term resistance is around 2911 and any violation above targets 2929/2950.It is currently trading around 2894.

 On the higher side, near term resistance is around $1365-66 and any convincing break above targets $1380/$1398. Major trend reversal only above $1366. 

The near term support is around $1332 (10- day MA) and any break below confirms minor weakness a dip till $1323 (38.2% fib)/$1318. Any major weakness only below $1318.

It is good to buy on dips around $1338-39 with SL around $1332 for the TP of $1358.