• FxWirePro: Gold downside capped by 100 day ma, good to buy on dips

    Source: FxWire Pro - Technicals / 08 May 2017 01:37:26   Eastern Standard Time

    • Gold prices declined sharply till $1221 after centrist macron wins French election. Overall downside is capped by strong Euro.
       
    • Centrist candidate Emmanuel Macron won the French Presidential election with about 66.1% votes against 33.9% for Le Pen. 
       
    • U.S economy has added 211k jobs in April compared to forecast of 185K jobs. The unemployment rate fell to 4.4% lowest since May 2007.
       
    • Technically gold is facing strong support at $1219 (100 – day MA) and any break below will drag the yellow metal down till $1209/$1200. It should break below $1195 (Mar 10th 2017 low) for further weakness.
       
    • On the higher side, near term resistance is around $1242 (100 EMA) and any break above targets $1252 (200 day MA)/ $1261 (daily Kijun-Sen).

      It is good to buy on dips around $1225 with SL around $1219 for the TP of $1240/$1250.