FxWirePro: Gold bugs target test of $1320 area in short-term; trade with caution
Gold bugs are looking to ride on weaker USD, Last week’s price action made it clear that the dollar rally is losing momentum. After a superb rally at March end, dollar bugs lost the touch in the first week of April. A ma…
Last week’s price action made it clear that the dollar rally is losing momentum. After a superb rally at March end, dollar bugs lost the touch in the first week of April. A major break couldn’t have been clearer that the above-shared 4-hourly chart of FXCM U.S. dollar index that also puts weight on the Australian dollar.
This weakness in the USD has pushed the precious metal, especially gold to find support at last month’s low around $1275-1280 area.
Trade idea:
Our calculations suggest that Gold bulls are targeting $1320 per ounce area, however, it is likely that they might fall short of the target and long-term sellers are around $1318 area. Moreover, Gold bulls would face serious challenge around $1308 area, largely due to sizable sell orders. And, bears are looking to break the $1275-80 support area.
The strength of the USD would remain a key factor in yellow metal’s next move.
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