FxWirePro:Gold trades well below trend line support in daily chart, decline till $1216 likely
Potential reversal Zone (PRZ) - $1227. The yellow metal hits one week low yesterday on account of strong dollar and increasing U.S 10 –year bond yields. Gold has declined almost $20 from the high of $1250.It is currently…
The yellow metal hits one week low yesterday on account of strong dollar and increasing U.S 10 –year bond yields. Gold has declined almost $20 from the high of $1250.It is currently trading around $1232.12.
The yellow metal extended its losses in the toady Asian session on account of increased probability of rate hike by fed in Mar.US Dollar index breaks major resistance of 102.06 yesterday and jumped till 102.26. U.S 10 – year bond yield held higher at 2.49% and 2- year yield hits highest since 2009.
On the higher side, $1262 (200- day MA) will be acting as major resistance and any further bullishness only if it closes above that level. Any daily close above $1262 will target $1278 (61.8% retracement of $1375.20 and $1122.70). The minor resistance is at $1250.
The immediate support is around $1230 (38.2% retracement of $1180 and $1263.94) and any close below targets $1222 (daily Kijun-Sen)/$1213 (100- day MA).
It is good to sell on rallies around $1232-34 with SL around $1242 for the TP of $1222/$1216.
