While
the US dollar is boosted today by stronger economic data along with the rising expectations
of Fed’s rate hike, gold prices plummeted and hit a new fresh low.
XAU/USD pair was sliding downwards for sixth consecutive session and pressured
mainly by the US dollar strength extended its fall to reach an intraday low at $
1265. The pair crossed the 100-day moving average as well as the key support
level at $ 1300. It is important to mark that gold prices have not visited significant
lows since end of May 2016, when tumbled to $ 1198.
As
seen on the daily chart, gold has formed five waves descending line and is
currently riding the third one at $ 1351. The Stochastic is showing oversold
market and RSI neared negative area. Expecting corrective movement towards
$1300/1305 area. Resistance is now located at $ 1300 and $ 1318. Support is
seen at $ 1268 and $ 1250.
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