• FxWirePro: Gold trades weak on strong US Dollar, good to sell on rallies

    Source: FxWire Pro - Technicals / 21 Nov 2017 04:02:26   Eastern Standard Time

    • Gold has shown a massive selling yesterday after hitting high of $1296 on account of strong US dollar and strong US leading economic indicators for Oct. The yellow metal declined almost $20 yesterday and is currently trading around $1280.40.
       
    • US Dollar index has recovered slightly after forming a temporary bottom around 93.40. The index is facing strong support at 93.40 (50- day MA) and any break below targets 93/92.59/92. It is currently trading around 94. The pair is facing intraday resistance around 94.16 (89- day EMA) and any break above will take the index to next level till 95/95.15.
       
    • Technically gold is facing near term resistance around $1300 and any break above will take the pair to next level till $1300/$1309. Minor resistance is around $1282.50 (55- day EMA).
       
    • Gold’s near term support is around $1262 (61.8% retracement of $1204 and $1357.90) and break below will drag the commodity down till $1250.The yellow metal should close below $1250 for major trend reversal. The minor support is around $1277/$1270. 

      It is good to sell on rallies around $1283-85 with SL around $1296 for the TP of $1267/$1262.