FxWirePro: Gold trades below 5- day MA, good to sell on rallies

• Gold continuing its weakness and declined $6 in the Asian session. The yellow metal hits intraday low of $1340.19 and trading at $ 1341. US dollar has shown good recovery almost 120 pips from the low of 88.25 and is at 89.34.
   
• The yellow metal further selling is possible on account of short covering in USDJPY.  USDJPY’s major resistance is at 107.87 (10- day MA) and any break above confirms further bullishness. The yen and gold are moving in tandem with each other on safe haven demand.
   
• On the lower side, any break below $1341 (38.2% fib) will drag the gold down till 1338 (20- day MA)/$1332 (10- day MA)/$1328. Bearish continuation only if it breaks below $1305 level.
   
• The near term resistance is around $1357 and any close above will take the commodity till $1360/$1366. Overall bullish continuation only above $1366.

It is good to sell on rallies around $1344-$1345 with SL around $1351 for the TP of $1330/$1324.