Ichimoku analysis (4 Hour chart)
Tenken-Sen- $1838
Kijun-Sen- $1881
Gold declined more than $10 from minor top $1874. The yellow metal has failed to cross 21- day MA and minor bullishness only above that level. The US dollar index continues to trade weak despite dovish comments by ECB. The demand for riskier assets is putting pressure on gold at higher levels. The number of people who have filed for unemployment benefits in the US has declined to 900K compared to a forecast of 900K. Markets eye US flash manufacturing PMI and existing home sales data for further direction.
Technical:
The yellow metal faces strong support at $1857, violation below targets $1845/$1830/$1818 (61.8% fib)/$1800. Significant trend reversal if it breaks below $1800.On the higher side, near term resistance is around $1878 (200-4- H MA), any indicative break above that level will take till $1900.
It is good to buy on dips around $1850-51 with SL around $1838 for the TP of $1900.
