27 Dec 2013
Gold continues to bounce as DXY remains under ST pressure; 1218.85 next resistance
FXstreet.com (Barcelona) - The drop in the DXY over the last several days has provided a short-term tailwind for gold and silver futures. The obvious question for gold is whether the weakness in the DXY will persist much longer.
Gold catching the attention of a percentage of traders and analysts
Many market observers were out in the press recently extolling the virtues of getting long of gold near last week’s lows at 1186. They obviously caught a break with the low-volume weakness in the DXY recently. The DXY is in the middle of a trading range now with support near 79.75 and resistance up at 80.72. Gold bulls really need the DXY to break and close below 79.75 for the flood gates to open on the upside.
Technical outlook for gold
Technicians say that if the most bearish scenario plays out that the ultimate downside target for gold is 1,065. However, gold will obviously see support at this week’s low of 1186. If that level breaks, gold may very well see some buying interest at the 6/28 low of 1179.80 and the Fibonacci projection of 1172. Resistance comes in at the Fibonacci retracement line at 1218.85 and is followed up by the 12/12 close of 1224.90 and the recent pivot high at 1250.
Gold catching the attention of a percentage of traders and analysts
Many market observers were out in the press recently extolling the virtues of getting long of gold near last week’s lows at 1186. They obviously caught a break with the low-volume weakness in the DXY recently. The DXY is in the middle of a trading range now with support near 79.75 and resistance up at 80.72. Gold bulls really need the DXY to break and close below 79.75 for the flood gates to open on the upside.
Technical outlook for gold
Technicians say that if the most bearish scenario plays out that the ultimate downside target for gold is 1,065. However, gold will obviously see support at this week’s low of 1186. If that level breaks, gold may very well see some buying interest at the 6/28 low of 1179.80 and the Fibonacci projection of 1172. Resistance comes in at the Fibonacci retracement line at 1218.85 and is followed up by the 12/12 close of 1224.90 and the recent pivot high at 1250.