FxWirePro: Gold trades weak after Fed Powell testimony, good to sell on rallies

• Gold shown a good selling of almost $23 yesterday after a US fed Powell testimony in Congress. The yellow metal decline was supported by slight jump in US dollar. US dollar has jumped sharply till 90.49 almost 80 pips from the low of 89.69 and is trading at 90.41.
   
• Fed chairman Powell testimony to the US House Financial Services Committee lifted the US dollar last night. Powell said that Fed is set to upgrade US economic outlook in next meeting on Mar 21st 2018 and affirmed that inflation to rise towards fed target of 2%.
   
• On the lower side, any break below $1308 (23.6% fibo) will drag the gold down till $1305. Bearish continuation only if it breaks below $1305 level. Any violation below $1305 will drag the gold till $1299 (100- day MA)/$1282 (233- day MA).
   
• 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 $1330 with SL around $1324 for the TP of $1347/$1351.