FxWirePro: Gold forms potential Bullsih pattern, good to sell on rallies
Pattern formed – Potential Bullish AB = CD pattern Potential reversal Zone (PRZ) - $1233.50 The yellow metal has shown a minor jump of almost $13 from the low of $1237 yesterday. It is currently trading around $1246.55. …
Pattern formed – Potential Bullish AB = CD pattern
Potential reversal Zone (PRZ) - $1233.50
The yellow metal has shown a minor jump of almost $13 from the low of $1237 yesterday. It is currently trading around $1246.55.
But its upside is limited on account of increased probability of Mar rate hike by Fed. According to Fed rate Monitor tool Fed fund futures priced in 70% chance of rate hike in Mar.
US Dollar index broken major resistance of 101.73 and jumped sharply till 101.97 level. Short term trend is bullish as long as support 100.60 holds.
On the higher side, $1262 (200- day MA) will be acting as major resistance and any further bullishness only if it closes above that level. Any daily close above $1262 will target $1278 (61.8% retracement of $1375.20 and $1122.70).
The immediate support is around $1240 (trend line joining $1180 and $1216) and any close below targets $1234 (21- day EMA)/$1222 (daily Kijun-Sen).
It is good to sell on rallies around $1248-$1250 with SL around $1258 for the TP of $1234/$1222.
