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15 Aug 2013
Gold threatening a short-term breakout above 1343.70. Target 1,427 if it happens.
FXstreet.com (Barcelona) - Gold – already sporting a short-term bullish chart – caught a tailwind from the pullback in the DXY Wednesday. More upside possible, if not likely, but macro bear trend still in place.
Gold may punch through resistance and squeeze the shorts further
Levels are one thing, but trading action usually trumps specific levels of support and resistance in terms of importance. Right now, resistance for gold comes in a just above current levels at 1343.70 – which some might take as bearish due to a potentially poor reward / risk ratio. However, in gold’s case, the recent trading action has been bullish in nature – with pullbacks being the mild variety and rallies having more “oomph” to them. That being noted, gold could easily (with the help of a continued correction in the DXY) break through 1,343.70 and the next resistance at 1,349.10 which would then clear the way for a move to ultimate resistance at 1,427 (Fibonacci-generated “correction resistance”).
Technical outlook for gold
As noted, resistance for gold comes in at 1,343.70, 1,349.10 and then 1,427. Support for gold - should resistance surprisingly hold firm - comes in at the recent pivot low of 1,315 and is backed up by the importany support range at 1,265 – 1,270.
Gold may punch through resistance and squeeze the shorts further
Levels are one thing, but trading action usually trumps specific levels of support and resistance in terms of importance. Right now, resistance for gold comes in a just above current levels at 1343.70 – which some might take as bearish due to a potentially poor reward / risk ratio. However, in gold’s case, the recent trading action has been bullish in nature – with pullbacks being the mild variety and rallies having more “oomph” to them. That being noted, gold could easily (with the help of a continued correction in the DXY) break through 1,343.70 and the next resistance at 1,349.10 which would then clear the way for a move to ultimate resistance at 1,427 (Fibonacci-generated “correction resistance”).
Technical outlook for gold
As noted, resistance for gold comes in at 1,343.70, 1,349.10 and then 1,427. Support for gold - should resistance surprisingly hold firm - comes in at the recent pivot low of 1,315 and is backed up by the importany support range at 1,265 – 1,270.