Wednesday 15 February 2017

Gold found support at 100-day SMA

The strong US economic data along with the hawkish comments of the Fed Chair Janet Yellen uplifted the US Dollar index and consequently dragged Gold prices lower. The precious metal marked today a  two-week low at $1216, but found support exactly at this area where currently is located the 100-day SMA and succeeded to escape towards $1230 region. As seen on the four-hour time frame during the past two sessions technical indicators have been placed around mid-lines, but today are showing signs of slight bullish momentum. Strong resistance is located at $1248 (50% Fibonacci retracement of latest July to December decline) and given the fact that bulls couldn't find enough strength to conquer this level we may consider that the situation is ruled now by the bears. Immediate horizontal support is seen at $1218 (38.2% Fibonacci retracement of same decline) and in case of fluctuating again around this level, Gold is poised to extend the downward slope towards the psychological $1200 mark.


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