The US government revised its economic growth for the fourth quarter as consumer spending and exports were less than calculated before. The annual GDP expanded 2.4%, down from 3.2%. On Friday, gold dropped on Yellen’s comments. Gold is very bullish on Monday in Asia as Ukraine’s crisis deepens. If there is military action, then gold will rally further. We expect the correction to be completed at the level of $1,318.0. As we mentioned in our previous reports, the level of $1,318.0 is the crucial support for all the longs. Gold exactly took support from the level of $1,319.0 and flew away. On the upper side, the level of $1,346.0 is the strong resistance. If it crosses that level, gold easily will touch $1,361.0.
In the daily chart, today’s low made in Asia was the strong support of $1,329.0 for further trading session. Gold holds the 200EMA and is unable to cross the resistance level at $1,346.0. The daily oscillators are giving a negative indication. Further up move will be intact only above $1,346.0 towards $1,361.0.
Upside-
· The price is trading above 200DEMA on the daily and hourly basis, $1,329.0.
· $1,346.0 is the strong resistance zone, above that $1,361.0 in the charts.
Downside-
· The area below $1,329.0, $1,318.0 is the major support zone.
· A day close below the level of $1,318.0 will push gold towards $1,307.0, $1,300.0, and $1,286.0.
· The trend changes after a day close below $1,245.0.
· RSI favours the downside in the daily and hourly charts.
Recommendations-
· Intraday- Above $1,346.0, next targets are at $1,350.0 and $1,361.0.
· On positional basis, until the price trades above the level of $1,346.0, we can’t see higher levels.
The US government revised its economic growth for the fourth quarter as consumer spending and exports were less than calculated before. The annual GDP
expanded 2.4%, down from 3.2%. On Friday, gold dropped on Yellen’s comments. Gold is very bullish on Monday in Asia as Ukraine’s crisis deepens. If there is military action, then gold
will rally further. We expect the
correction to be completed at the level of $1,318.0. As we mentioned in our previous reports, the level of $1,318.0 is the crucial support for all the longs. Gold exactly took support from the level of $1,319.0 and flew away. On the upper side, the level of $1,346.0 is the strong resistance. If it crosses that level, gold easily will
touch $1,361.0.
In the daily chart, today’s low made in Asia was the strong support of $1,329.0 for
further trading session. Gold holds the 200EMA and is unable to cross the
resistance level at $1,346.0. The daily oscillators are giving a negative
indication. Further up move will be intact only above $1,346.0 towards $1,361.0.
Upside-
·
The price is trading above 200DEMA on the daily and hourly basis,
$1,329.0.
·
$1,346.0 is the strong resistance zone, above
that $1,361.0 in the charts.
Downside-
·
The area below $1,329.0, $1,318.0 is the major support
zone.
·
A day close below the level of $1,318.0 will push gold towards
$1,307.0, $1,300.0, and $1,286.0.
·
The trend changes after a day close below $1,245.0.
·
RSI favours the downside in the daily and
hourly charts.
Recommendations-
·
Intraday- Above $1,346.0, next targets are at $1,350.0
and $1,361.0.
·
On positional basis, until the price trades
above the level of $1,346.0, we can’t see
higher levels.
$1,245
< $1,286 < $1,300 < $1,307 < $1,318
> $1,329 > $1,346 > $1,361
The material has been provided by InstaForex Company – www.instaforex.com
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