FxWirePro: Gold faces strong resistance at 200 W MA, good to sell on rallies
Major support - $1216 (21- day EMA) Major resistance - $1245 (200- W MA) Pattern formed - Bearish divergence The yellow metal declined once again after raising till $1243.85 on Friday as the U.S dollar gained against all…
The yellow metal declined once again after raising till $1243.85 on Friday as the U.S dollar gained against all major pairs. It is currently trading around $1233.29.
U.S dollar index has taken support near 21- day MA and jumped slightly from that level. The index is facing major support at 100 level. Any minor weakness can be seen above that level.
Gold major resistance is around $1245(200- WMA) and any break above targets $1262 (200-day MA)/ $1278 (61.8% retracement of $1375 and $1122) is likely.
On the lower side, minor support are around $1233 (10- day MA) and any indicative break below targets $1227 (61.8% retracement of $1216 and $1243.85)/$1220 (21- day EMA)/$1212 (daily Kijun-Sen).
It is good to sell on rallies around $1235-$1237 with SL around $1245 for the TP of $1227/$1220.
