- Harmonic pattern- bearish shark pattern.
- Potential Reversal Zone (PRZ) - $1357.
- RSI- Bearish divergence
- Gold jumped almost $20 from yesterday low of $1321.31. The yellow metal is continuing its one month winning streak on account of weak U.S dollar. US dollar index broken major support 91.75 and declined almost 100 pips from the level. The yellow metal hits high of $1343 and is currently trading around $1343.
- Euro jumped sharply after German Chancellor Angela Merkel has achieved breakthrough in forming coalition. CDU/CSU and SPD parties reached an agreement. US CPI rose 0.1% mom and 2.1% YOY slightly below expectations of 2.2%..
- On the higher side, gold is facing strong resistance at $1346 (88.6% fibo) and any break above will take the yellow metal till $1350/$1357.
- The near term support is at $1332 (3- day EMA) and any violation below will drag the metal to next level till $1319.50 (10-day MA)/$1313/$1305. Minor weakness below $1290. Any break below $1290 will drag the gold till $1280/$1270.
It is good to sell on rallies around $1346-$1348 with SL around $1357 for the TP of $1332/$1325.
