FxWirePro: Gold Weekly Outlook

Ichimoku analysis (Weekly chart)

Tenken-Sen- $1865

Kijun-Sen- $1919

Gold continues to trade lower for the past three consecutive weeks lost more than $150 on the surging US dollar. DXY is holding well above 90 levels, significant trend continuation only above 91. The slight profit booking in the US 10-year yield is supporting the yellow metal at lower levels.

Economic data:

US retail declined for the third consecutive time and dropped by 0.7% in Dec vs analyst forecast of 0.0%. US Empire state manufacturing index came at 3.5 in Jan weaker than predicted. US CPI advanced to 0.4% in-line with the estimate. The number of people who have filed for unemployment benefits rose to 965 K compared to 785K.

Technical:

 It is facing strong support at $1800, violation below targets $1760/$1720.On the higher side, near term resistance is around $1862, any indicative break above that level will take till $1876/$1885.

It is good to sell on rallies around $1838-40 with SL around $1851 for the TP of $1760.