Gold Breaks The Pennant After Long Consolidation Sessions
FxGrow | Dec 06, 2017 10:00AM ET
Gold Breaks The Pennant After Long Consolidation Sessions
After sixty consolodation session where gold was fluctuating between 70s and 90s levels, gold has finally broke the pennant that has been confined inside with sideways range and congestion. The precious metal gaped downward on Monday, then peeked to 1277 yesterday, but failed to press forward and dipped to 1261 low.
Fundamentally, the U.S tax plan approval during the weekend boosted the U.S Dollar and last week's upbeat U.S economic data has increased the odds of U.S Fed hike pushing the DXY to 93.45 high today. On the other hand, failure between UK and Eurozone is still weakening the British pound and EURO, giving more strength to the greenback against XAU/USD.
Gold Technical Overview
Closing price: 1265.85
Target price: 1251
Trend: Sideways / Down
Trend reversal price: 1286
Resistance levels: 1271, 1276
Support levels: 1258, 1251
Comment: The market extended the short term flagging downturn and suggests further selling to 1251. Minor corrections should stay in the 1270's to maintain bear trend forces. A push over 128050 stops pressing bear forces, but only a close over 1286.00* highlights a lasting turn to higher prices.
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