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 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.
• Another note of caution, any major breakout unlikely with ‘supernova Wednesday’ looming ahead, https://www.econotimes.com/FxWirePro-Are-you-ready-for-supernova-Wednesday-1522919