FxWirePro: Gold trades weak, break below $1260 confirms short term bearishness
Gold declined sharply almost $17 yesterday on strong U.S dollar. The yellow metal hits low of $1260.88 and is currently trading around $1266.64. Market awaits major economic data US ADP employment to be released today fo…
Gold declined sharply almost $17 yesterday on strong U.S dollar. The yellow metal hits low of $1260.88 and is currently trading around $1266.64. Market awaits major economic data US ADP employment to be released today for further direction.
The US ISM non- manufacturing index declined to 57.4 in the month of November from 60.1 compared to forecast of 59.2. Despite the slowdown it was the 95th consecutive month of expansion.
US Dollar index has once again declined slightly after hitting high of 93.49. It should break above 93.75 for further bullishness. The major resistance is around 93.75 (50- day MA) and any break above will take the index till 94.25/94.60/95.19. The pair is facing support around 92.50 and any break below will take the index to next level till 92./91.62.
Technically gold is facing near term resistance around $1270 (200- day EMA) and any break above will take the pair to next level till $1275/$1281 (50- day MA).
Gold’s near term support is around $1260 and break below will drag the commodity down till $1250/$1243 (161.8% fibo).
It is good to sell below $1260 with SL around $1267 for the TP of $1250/$1243.
