FxWirerPro: Gold trades higher on weak US dollar, good to buy on dips
Major resistance - $1237 (61.8% retracement of $1263.95 and $1195). Gold rallied to three week high on weak U.S dollar and safe heaven demand . The yellow metal broken the major resistance at $1237 (61.8% fibo) and jumpe…
Major resistance - $1237 (61.8% retracement of $1263.95 and $1195).
Gold rallied to three week high on weak U.S dollar and safe heaven demand . The yellow metal broken the major resistance at $1237 (61.8% fibo) and jumped till $1247.
The yellow metal has taken support near 21- day EMA and any minor weakness can be seen only below that level.
DXY has broken major pschycological support at 100 and declined till 99.66 yesterday and is trading at 99.79 . The index is facing strong support at 99.25 and break below will drag the pair down till 98.
Technically, near term resistance is $1250 and any break above will take the yellow metal till $1260 (200- day MA).
On the lower side, $1229 (daily Kijun-Sen) will be acting as major support and any break below will drag the gold down till $1222 (100- day MA)/$1219 (50- day MA).
It is good to buy on dips around $1235-37 with SL around $1229 for the TP of $1250/$1259.
