FxWirePro: Gold recovers slightly on weak U.S dollar, good to sell on rallies

• Gold recovered almost $12 from the low of $1208 on account of weakness in US dollar. The yellow metal jumped till $1220.53 and is currently trading around $1219.
   
• Euro surged against all majors on expectation of ECB stimulus exit. Market awaits Fed chairman testimony on US central bank’s semiannual report on monetary policy and the economy. Jannet Yellen expected to testify based on Fed FOMC  minutes that it may reduce the bond holdings and mortgage backed securities by Aug.
   
• Gold’s near term support is around $1207 (50% retracement of $1122.75 and $1296.30) and break below will drag the commodity down till $1200/$1195. The yellow metal should break below $1180 for major trend reversal.
   
• On the higher side, in the daily chart minor resistance is around $1220 (5 day MA) and any break above will take the commodity till $1230 (daily Tenkan-Sen)/$1241 (38.2%  retracement of $1296.20 and $1122.30)/$1250.

It is good to sell on rallies around $1220-$1222 with SL around $1233 for the TP of $1200/$1196.