FxWirePro: Gold trades slightly above trend line resistance, good to buy on dips
Gold has shown minor jump till $1299 yesterday on account of weak US dollar.US dollar was trading weak against Euro for the past three days on account of strong economic data and slight stability in German politics. The …
Gold has shown minor jump till $1299 yesterday on account of weak US dollar.US dollar was trading weak against Euro for the past three days on account of strong economic data and slight stability in German politics. The yellow metal has formed a minor bottom at $1285 and jumped slightly from that level. Market awaits Fed new Governor Jerome Powell will appears before US Senate Banking Committee and Senate tax bill vote for further direction. It is currently trading around $12.
US Dollar index has shown a minor jump after hitting low of 92.50 level. The near term support is around 92.50 and any break below will drag the index to next level till 92.20/91.62. It is currently trading around 92.90. The pair is facing intraday resistance around 93.40 (7- day MA) and any break above will take the index to next level till 93.80/94.25/94.60/95.
Technically gold is facing near term resistance around $1300 and any break above will take the pair to next level till $1309/$1313/$1322.
Gold’s near term support is around $1283 (50- day MA) and break below will drag the commodity down till $1279/$1274.The yellow metal should close below $1262 (61.8% fibo) for major trend reversal.
It is good to buy on dips around $1283-$1285 with SL around $1274 for the TP of $1300/$1309..
