FxWirePro: Gold takes support at 55- day EMA on weak dollar, good to buy on dips
Gold has shown a good recovery in Asian session on account of slight weakness in US dollar. Fed’s monetary policy report released on Friday shows that the chance of Fed to hike rates more than thrice this year is very le…
Gold has shown a good recovery in Asian session on account of slight weakness in US dollar. Fed’s monetary policy report released on Friday shows that the chance of Fed to hike rates more than thrice this year is very less. The yellow metal hits high of $1340 almost $14 and trading at $ 1338. US dollar has shown minor weakness almost 60 pips from the high of 90.24 and is trading at 89.61.
With no major economic indicator release for both Europe and U.S . ECB president Draghi speech is major event for the day.
On the lower side, any break below $1318 (55- day EMA) will drag the gold down till 1316 (38.2% fibo)/$1309. Bearish continuation only if it breaks below $1305 level. The near term support is around $1330.
The yellow metal broken major resistance at $1336 (20- day MA) and any close above confirms further bullishness and a jump till $1342 (50% Fibo)/$1348/$1355. Overall bullish continuation only above $1366.
It is good to buy on dips around $1333-$1335 with SL around $1327 for the TP of $1347/$1351.
