Gold upside capped by 50- day ma, good to buy on dips
- Gold has once again declined slightly after hitting high of $1289.35 on account better than expected US data. The yellow metal dipped almost $15 from the yesterday high. U.S CPI and retail sales data came yesterday beats analyst estimates. It is currently trading around $1276.60.
- US CPI excluding food and fuel rose for the first time on an annual basis since Jan 2017.The slight pick in the monthly core CPI will give comfort for Fed to hike rates in the coming months. US retail sales came at 0.2% in Oct compared to forecast of 0% .
- US Dollar index has recovered slightly after hitting low of 93.40 yesterday. The index is facing strong support at 93.40 (50- day MA) and any break below targets 93/92.59/92. It is currently trading around 93.89. The pair is facing intraday resistance around 94 and any break above will take the index to next level till 94.25/95/95.15.
- Technically gold is facing near term resistance around $1291 (Oct 19th 2017 high and 8% fibo) and any break above will take the pair to next level till $1300/$1309. Minor resistance is around $1282.50 (55- day EMA).
- Gold’s near term support is around $1262 (61.8% retracement of $1204 and $1357.90) and break below will drag the commodity down till $1250.The yellow metal should close below $1250 for major trend reversal. The minor support is around $1277/$1270.It is good to buy on rallies around $1270-72 with SL around $1262 for the TP of $1289/$1300.
Source: FXWire Technicals