FxWirerPro: Gold downside capped by 100 –day EMA, good to buy on dips
Major resistance - $1237 (61.8% retracement of $1263.95 and $1196). Gold rallied to highest finish in two weeks yesterday on account of dovish Fed and weak dollar. The yellow metal broken major resistance at $1230 and ju…
Major resistance - $1237 (61.8% retracement of $1263.95 and $1196).
Gold rallied to highest finish in two weeks yesterday on account of dovish Fed and weak dollar. The yellow metal broken major resistance at $1230 and jumped sharply till $1233.
The yellow metal declined slightly till $1224 from the high of $1233. It is currently trading around $1226.98.
DXY has broken major support of 100.60 and declined till 100.21. The index is trading sligfhty below 100.60 and a decline till 100/99.25 likely. It is currently trading around 100.25.
Technically, near term resistance is around $1229 (daily Kijun-Sen) and any break above will take the yellow metal till $1237 (61.8% retracement of $1263.95 and $1195)/$1247.
On the lower side , $1220 (21- day EMA) will be acting as major support and any break below will drag the gold down till $1208/$1196.
It is good to buy on dips around $1223 with SL around $1217 for the TP of $1237/$1245
