FxWirePro:Gold retreats slightly on account of strong U.S dollar , good to sell on rallies
Wednesday, March 29, 2017 5:57 AM UTC
- Major resistance - $1260-$1264 (200- day MA and Feb 24th high).
- Major support - $1237.
- Gold jumped almost $7 yesterday and touched $1258 nearing its new one month high on account of weak U.S dollar and treasury yields.
- The yellow metal has shown a mild sell off from the yesterday high as US Dollar index recovered from one month low of 98.86. DXY taken support near 61.8% fibo and jumped till 99.83 at the time of writing. US . dollar index should break above 100 for further bullishness.
- U.S 10 –year treasury yield jumped from the month low of 2.35% till 2.41% .
- Technically, gold is facing major resistance around $1260-$1264 and any break above will take the yellow metal till $1273/$1280.
- On the lower side , major support is at $1234 (21- day EMA) and any break below will drag the yellow metal till $1224 (100- day EMA)/$1219 (61.8% retracement of $1195 and $1261).
It is good to sell on rallies around $1250-$1253 with SL around $ 1260 for the TP of $1238/$1234.