26 Jul 2013
Gold holds support at 1,308 and rebounds as DXY reverses lower Thursday
FXstreet.com (Barcelona) - Gold rallied off of 1,308 support early Thursday in reaction to rumors of the US Federal Reserve announcing that they will continue their QE efforts for the foreseeable future.
Gold continues inverse to US Dollar – posting intraday rally on DXY bearish reversal
Gold futures were initially trading lower Thursday as the greenback was bouncing and testing resistance off of data from England and Europe. However, a failure of the DXY to break above 82.42 resistance and the subsequent rumor-induced acceleration lower forced gold off of the low at 1,308 support. The bounce in gold continued into the end of the US trading session.
Technical outlook for gold
Technicians are calling for a continued run up in gold to a test of Thursday’s high at approximately 1,348 at the very least. At that point, the technicians say gold will either blow right through that level or turn and reverse lower for one more test of 1,308 support. Short-term resistance for gold comes in at the 1,348 level and is followed by the early-June peak and Fibonacci retracement (of the October to June decline) level of 1,418.42. Short-term support for DXY comes in at the first two Fibonacci retracement (of the recent rally) support levels of 1,308 and 1,284.
Gold continues inverse to US Dollar – posting intraday rally on DXY bearish reversal
Gold futures were initially trading lower Thursday as the greenback was bouncing and testing resistance off of data from England and Europe. However, a failure of the DXY to break above 82.42 resistance and the subsequent rumor-induced acceleration lower forced gold off of the low at 1,308 support. The bounce in gold continued into the end of the US trading session.
Technical outlook for gold
Technicians are calling for a continued run up in gold to a test of Thursday’s high at approximately 1,348 at the very least. At that point, the technicians say gold will either blow right through that level or turn and reverse lower for one more test of 1,308 support. Short-term resistance for gold comes in at the 1,348 level and is followed by the early-June peak and Fibonacci retracement (of the October to June decline) level of 1,418.42. Short-term support for DXY comes in at the first two Fibonacci retracement (of the recent rally) support levels of 1,308 and 1,284.