Gold trades higher after Federal Open Market Committee meeting, good to buy on dips
- Gold has shown a good jump yesterday after FOMC meeting. The yellow metal has shown a jump of almost $15 from the low of $1332. US dollar index is still consolidation after making a high of 89.64. Gold is currently trading around $1342.37.
- US dollar is still trading weak after of US FOMC meeting. The central bank has kept its interest rate unchanged at 1.25%-1.50%. Fed was optimistic in its statement and has stated that employment and house hold spending and business fixed investment was solid and unemployment rate was low. The fed was more hawkish and market eyes US ADP and Non far m payroll data for further direction.
- The near term support is at $1332 (20- day MA) and any violation below will drag the metal to next level till $1320/$1316.50 .Major weakness below $1330.
- On the higher side near term resistance is around $1347 (61.8% fibo) and break above targets $1357/$1366. Bullish continuation only above $1365.
It is good to buy on dips around $1335-37 with SL around $1330 for the TP of $1347/$1355.
Source: FXWire Technicals