FxWirePro: Gold closed below 20 – day MA, good to sell on rallies
Gold continuing its weakness and declined $20 yesterday. The yellow metal hits intraday low of $1325.10 and trading at $ 1327. US dollar has shown good recovery almost 60 pips from the low of 89.22 and is trading at 89.8…
Gold continuing its weakness and declined $20 yesterday. The yellow metal hits intraday low of $1325.10 and trading at $ 1327. US dollar has shown good recovery almost 60 pips from the low of 89.22 and is trading at 89.85.
The yellow metal selling was only of short covering in USDJPY. USDJPY broken resistance is at 107.65 (10- day MA) and jumped till 107.90. The yen and gold are moving in tandem with each other on safe haven demand.
On the lower side, any break below $1318 (55- day EMA) will drag the gold down till 1316 (38.2% fibo)/$1309. Bearish continuation only if it breaks below $1305 level.
The near term resistance is around $1341 and any close above will take the commodity till $1348/$1355. Overall bullish continuation only above $1366.
It is good to sell on rallies around $1332-35 with SL around $1341 for the TP of $1321/$1316.
