FxWirePro: Gold downside capped by 20- day MA, break below confirms further weakness

• Gold was shown a see- saw ride yesterday. The yellow metal has shown a jump of almost $13 and shown good selling from the yesterday high. US dollar index has declined till 88.91 after high of 89.64. Gold is currently trading around $1342.65.
   
• US dollar has declined slightly after Trump’s first state of the union address. Markets await Fed policy meeting today for further direction. The central bank is expected to keep interest rates unchanged and investors eyes fresh hint from Fed on interest rate outlook.
   
• The near term support is at $1332 (20- day MA) and any violation below will drag the metal to next level till $1320/$1316.50 .Major weakness below $1330.
   
• On the higher side near term resistance is around $1347 (61.8% fibo) and break above targets $1357/$1366. Bullish continuation only above $1365.

It is good to sell on rallies around $1337-39 with SL around $1347 for the TP of $1324/$1316.