FxWirePro: Gold weekly outlook
- Gold jumped almost $32 from previous week low of $1308. The yellow metal is continuing its 6- week winning streak on account of weak U.S dollar. US dollar index broken major support 91.75 and declined almost 148 pips from the level. The yellow metal hits high of $1344 and is currently trading around $1340.
- Euro is continuing its bullishness for fifth consecutive week on account of hawkish comment by ECB Governing Council member. ECB Governing council Member Ardo Hansson said in interview to end the bond purchases after Sep. 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 $1318-20 (23.6% fibo and 3- W EMA) and any violation below will drag the metal to next level till $1308/$1298 (5- W MA). Minor weakness below $1287 (10- W MA). Any break below $1287 will drag the gold till $1280/$1270.
- 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 buy on dips around $1320 with SL around $1300 for the TP of $1357/$1375.
Source: FXWire Technicals