FxWirePro: XAU/USD downside capped by 5- day MA, good to buy on dips
Gold declined slightly after hitting an intraday high of $1265 yesterday. Dollar has been under pressure after dovish Fed. Market expects Fed to hold on rate hike till Dec after watching series of economic data for few m…
Gold declined slightly after hitting an intraday high of $1265 yesterday. Dollar has been under pressure after dovish Fed. Market expects Fed to hold on rate hike till Dec after watching series of economic data for few months. The yellow metal declined till $1254 yesterday and is currently trading around $1259.
Technically gold has broken major resistance around $1258 and closed slightly above that level yesterday.
Gold’s near term support is around $1252 (5- day MA) and break below will drag the commodity down till $1242.75 (21- day EMA)/$1230 (200- day MA). The yellow metal should break below $1195 for major trend reversal.
On the higher side, in the daily chart minor resistance is around $1265 and any break above will take the commodity till $1280 (61.8% retracement of $1375 and $1122)/$1295.
It is good to buy on dips around $1258-$1259 with SL around $1252 for the TP of $1280.
