FxWirePro: Gold hits 1-1/2 year high, good to buy on dips

• Chart Pattern – Bearish Divergence (RSI and MACD).
   
• Gold has shown a huge jump almost $20 after hitting low of $1324. The yellow metal has broken the high of $1357 high made on Sep 8th 2017. US dollar index has been trading weak and has broken major support of 90 and declined till 88.81. It is currently trading around 89.01.
   
• Euro was trading higher yesterday after breaking 1.23 level. ECB has reduced its bond buying program form 60 billion euros to 30 billion and to end its QE by Sep 2018. Markets awaits next step on interest rates outlook by ECB in today’s meeting for further direction.
   
• The near term support is at $1355 (resistance turned into support) and any violation below will drag the metal to next level till $1350 (38.2% fibo)/$1344 .Minor weakness below $1330. Any break below $1330 will drag the gold till $1324/$1313.
   
• On the higher side near term resistance is around $1375 and break above targets $1380/$1393 (127.2% fibo).

It is good to buy on dips around $1357 with SL around $1350 for the TP of $1375.