30 Jul 2013
Gold churning below 1,340.90 resistance. Downside move coming?
FXstreet.com (Barcelona) - After a nice five wave rebound off the June lows of 1,179.40, gold may be in the very early stages of a short-term correction lower. Support could range from 1,299 all the way down to 1,248.
Gold’s short-term fate likely tied to moves in the US Dollar
Traders involved on either side of the gold trade will be monitoring carefully the moves in the currency markets this week as the metals markets are inversely correlated to the US Dollar in particular. With the very heavy economic data flow and central bank announcements due out this week, there will likely be plenty of movement in the DXY and its currency pairs.
Technical outlook for gold
Technicians vary in the precise levels where gold may find support, but they are heavily tilted in the short-term correction camp. Short-term support for gold comes in at Fibonacci-generated support at 1,299 and is followed up by retracement support levels at 1,280 and 1,249. Resistance for gold comes in at Friday’s high of 1,340.90 and is backed up by the twin peaks at 1,349.10 from 7/23 and 7/24.
Gold’s short-term fate likely tied to moves in the US Dollar
Traders involved on either side of the gold trade will be monitoring carefully the moves in the currency markets this week as the metals markets are inversely correlated to the US Dollar in particular. With the very heavy economic data flow and central bank announcements due out this week, there will likely be plenty of movement in the DXY and its currency pairs.
Technical outlook for gold
Technicians vary in the precise levels where gold may find support, but they are heavily tilted in the short-term correction camp. Short-term support for gold comes in at Fibonacci-generated support at 1,299 and is followed up by retracement support levels at 1,280 and 1,249. Resistance for gold comes in at Friday’s high of 1,340.90 and is backed up by the twin peaks at 1,349.10 from 7/23 and 7/24.