FxWirePro: Gold trades below 5- day MA, good to sell on rallies
Gold continuing its weakness and declined $6 in the Asian session. The yellow metal hits intraday low of $1340.19 and trading at $ 1341. US dollar has shown good recovery almost 120 pips from the low of 88.25 and is at 8…
Gold continuing its weakness and declined $6 in the Asian session. The yellow metal hits intraday low of $1340.19 and trading at $ 1341. US dollar has shown good recovery almost 120 pips from the low of 88.25 and is at 89.34.
The yellow metal further selling is possible on account of short covering in USDJPY. USDJPY’s major resistance is at 107.87 (10- day MA) and any break above confirms further bullishness. The yen and gold are moving in tandem with each other on safe haven demand.
On the lower side, any break below $1341 (38.2% fib) will drag the gold down till 1338 (20- day MA)/$1332 (10- day MA)/$1328. Bearish continuation only if it breaks below $1305 level.
The near term resistance is around $1357 and any close above will take the commodity till $1360/$1366. Overall bullish continuation only above $1366.
It is good to sell on rallies around $1344-$1345 with SL around $1351 for the TP of $1330/$1324.
