Gold prices come under pressure with the strong dollar being likely to reduce demand for yellow metal. The metal is likely to remain under pressure before the Fed meeting this month end. Traders eye on FOMC meeting, what the outcome will be? IF the US Fed further cuts its bond purchasing program, the journey of the gold moves towards the bear court. Today’s unemployment and home sales data can partly reveal the forward actions of Fed. Might be a big day for US dollar and gold. After the data published, we might see the short term trend for gold. Right now gold is trading in its crucial weekly support zone at the level of $1,230. Yesterday, it was unable to break the resistance zone at the level of $1,245 and it started falling further.
Attached in the hourly chart, oscillators sign a oversold position, resulted in a pullback. Prices are trading below 21DEMA, multi-highs at the levels of $1,243-$1,244 acting as strong resistance zone. We can observe the trading band at $1,230-$1,244.
Support- $1,230, $1,226, $1,220.
Resistance- $1,240, $1,244, $1,255.
In the daily charts oscillators are in a mixed bag, whereas stochastic in a extremely overbought zone. If prices break the previous support zone of $1,234, the immediate support exist at the level of $1,230.
Trading day on Thursday has started just now, prices are trading at the level of $1,233.5, having broken the weekly support zone, the 38.2retracementlevel is acting as support.
Intra day recommendation- Buy with sl at $1,230, targets are at $1,234 $1,240, cmp is $1,232.
The material has been provided by InstaForex Company – www.instaforex.com
Gold prices come under pressure with the strong dollar being likely
to reduce demand for yellow metal. The metal is likely to remain under pressure
before the Fed meeting this month end. Traders eye on FOMC meeting, what the outcome
will be? IF the US Fed further cuts its bond purchasing program, the journey of
the gold moves towards the bear court. Today’s unemployment and home sales data
can partly reveal the forward actions of Fed.
Might be a big day for US dollar and gold. After the data published, we
might see the short term trend for gold. Right now gold is trading in its crucial
weekly support zone at the level of $1,230. Yesterday, it was unable to break the
resistance zone at the level of $1,245 and it started falling further.
Attached in the hourly chart, oscillators sign a oversold
position, resulted in a pullback. Prices are trading below 21DEMA, multi-highs at the
levels of $1,243-$1,244 acting as strong resistance zone. We can observe the
trading band at $1,230-$1,244.
Support- $1,230, $1,226, $1,220.
Resistance- $1,240, $1,244, $1,255.
In the daily charts oscillators are in a mixed bag, whereas
stochastic in a extremely overbought zone. If prices break the previous support
zone of $1,234, the immediate support exist at the level of $1,230.
Trading day on Thursday has started just now, prices are trading at
the level of $1,233.5, having broken the weekly support zone, the 38.2retracementlevel is acting
as support.
Intra day recommendation- Buy with sl at $1,230, targets are at $1,234 $1,240, cmp is $1,232.
The material has been provided by InstaForex Company – www.instaforex.com
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