FxWirePro: Gold forms bearish engulfing pattern, good to sell on rallies

• Candlestick pattern- Bearish Engulfing pattern (Hourly chart).
   
• Gold declined almost $13 from high of $1344 made previous week. The yellow metal is continuing its 6- week winning streak on account of weak U.S dollar. The mild dip was due to profit booking after more than $100 jump from the low of 1236. US dollar index has shown a minor recovery of 50 pips from the low of 90.11. The yellow metal hits low of $1331.94 and is currently trading around $1335.
   
• US dollar index further strength depends on spending bill which is to be passed by end of this week to prevent government shutdown. Out of 239 house of republican 218 to vote yes on a deal to fund government.   On the higher side, gold is facing strong resistance at $1346 (88.6% fibo) and any break above will take the yellow metal till $1350/$1357.
   
• The near term support is at $1330 (100- H MA) and any violation below will drag the metal to next level till $1324 (200- H EMA)/$1320 (61.8% fibo).  Minor weakness below $1300. Any break below $1300 will drag the gold till $1287.
   
• On the higher side near term resistance is around $1352 (trend line joining $1433 and $1375) and break above targets $1357/$1375.

It is good to sell on rallies around $1337-1339 with SL around $1345 for the TP of $1320.