FxWirePro: Gold upside capped by 233- 6H MA, good to sell on rallies
Gold jumped till $1290 yesterday after slight recover in Euro but dollar regained sharply after US senate approved a budget blue print for 2018 fiscal which will pave way for for Republicans to pursue a tax-cut package w…
Gold jumped till $1290 yesterday after slight recover in Euro but dollar regained sharply after US senate approved a budget blue print for 2018 fiscal which will pave way for for Republicans to pursue a tax-cut package without Democratic support.The commodity declined from the yesterday high till $1282.49 and is currently trading around $1283.42.
US Dollar index has taken support near psychological at 93 and jumped slightly from that level. It is currently trading around 93.52. The pair is facing major support near 92.60 and any break below confirms minor weakness till 91.95/91.62. The near term resistance is at 93.70 (61.8% retracement of 92.75 and 94.27) and any convincing break above will take the index to next level till 94.30/95.
U.S 10 year yield has shown a minor jump after hitting low of 2.30% after US senate passes budget resolution yesterday .
Technically gold is facing major resistance around $1291(20- 6H MA) and any break above will take the yellow metal till $1296 (233- 6H MA)/$1300/$1309 (50% retracement of $1357 and $1260) /$1313/$1320.
Gold’s near term support is around $1269 (trend line support) and break below will drag the commodity down till $1262 (61.8% retracement of $1204 and $1357.90).The yellow metal should close below $1250 for major trend reversal.
It is good to sell on rallies around $1287-$1290 with SL around $1300 for the TP of $1262.
