FxWirePro: Buy Gold on dips
Ichimoku Analysis (Daily Chart)
Kijun-Sen- $1904.89
Tenken-Sen-$1920
Gold is trading slightly higher on the weak US dollar index. But no follow-through buying is happening above the $1900 level. US dollar index declined sharply despite better than expected ADP and pending home sales. US economy has added 749K jobs in Sep compared to a forecast of 650K. US pending sales rose 8.8% in August vs estimate of 3.1%. Markets eye US initial jobless claims and ISM manufacturing index for further direction. The yellow metal made an intraday high of $1895 and is currently trading around $1893.66.
The yellow metal is facing strong resistance at $1904 (55-day EMA). Any violation above will take to the next level till $1940/$1975. The near term support is around $1860, an indicative break below $1848 will take the commodity till $1825/$1800.
It is good to buy on dips at around $1860 with SL around $1848 for the TP of $1950.
