FxWirePro: Gold forms bearish engulfing pattern, good to sell on rallies

Candlestick pattern- Bearish Engulfing pattern

Gold has lost more than $15 after hitting 6-month high at $1258. The yellow metal retreated sharply after Fed hiked rates by 25 basis point and lowered its forecast to two rate hikes in 2019 from 3. Fed has trimmed its growth forecast to 2.5% from 2.3%. It hits low of $1241.85 and is currently trading around $1246.30.

On the lower side near term major support is around $1237 (200- day MA) and any break below targets $1232/$1226 (89- day EMA).

The near term major intraday resistance is around $1251 and any break above targets $1258/$1264 (50% fib).

It is good to sell on rallies around $1250-$1251 with SL around $1258 for the TP of $1232.