The yellow metal lost its momentum at yesterday's trade as a result of USD rebounds from a 2-week low. The metal successfully held the 50Dsma and tested 100Dsma at the Asian session. Everybody is waiting for the FOMC meeting minutes today. The metal is preparing for the mega event. The metal has met strong resistance between $1,232.00 and $1,234.60 above these; parallel resistance at $1,239.00 comes to existence. In the daily chart, we can observe the formation of head and shoulder pattern. The right-hand shoulder is in progress. The weekly pattern is framed between $1,244.00 and $1,178.00. The metal price movement is likely to favor bulls in the near term. The price has slightly corrected, and another sharp run takes place again. Intraday support is found at $1,206.50. We recommend selling below $1,206.00 with targets at $1,201.00, $1,198.00, and $1,195.00. The weekly uptrend is likely to be erased in case the price breaks below $1,178.00. Bulls must close above $1,212.00 on a weekly basis. The price has been facing strong resistance at 20Wsma for 3 consecutive weeks. The intra-week trend still favors buyers with sl $1,201.00 on closing basis. Intraday resistance is seen at $1,212.00 and $1,215.50. We recommend buying above $1,216.00 with targets at $1,219.00, $1,223.00, $1,225.00, $1,232.00, and $1,235.00 for intraday trade. On the down hand, we recommend selling below $1,206.00 with targets at $1,201.00 and $1,194.00. Strong selling will emerge below $1,200.00 and panic is likely to be triggered below $1,194.00 towards $1,178.00. The current uptrend will cancel in case the price closes below $1,178.00.
Trade: Selling only below $1,206.00
Safe traders- buying above $1,216.00
Risk takers- buying above $1,212.00
The material has been provided by InstaForex Company - www.instaforex.com
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