Gold Forex Technical Analysis for June 21, 2016
Forex Technical Analysis – Gold markets fell slightly during the course of the day on Monday, as we tested the $1280 level. With that being the case, the market continues to go back and forth and consolidate in this area. Eventually the $1300 level could be broken to the upside, but until then this is a market that looks as if it is trying to build up momentum to go much higher. Ultimately, this should be a market that continues to try to build up the momentum meaning that every time this market breaks down, it could be thought of as a buying opportunity.
In Other View Point – Gold down for second consecutive day, slide to $1284
Gold is trading lower again on Tuesday, for a second consecutive session, as the latest Brexit poll results continues to hurt safe-haven demand for the yellow metal.
Currently trading at $1284, the metal has virtually erased majority of its recovery gains posted on Monday. Despite of two days of weakening trend, the precious metal still remains within striking distance of $1300 psychological mark, as weak US Dollar is seen limiting any sharp downslide.
Development surrounding the Brexit issue might continue to dominate the headlines and drive investor risk sentiment. In the meantime, traders turn their focus to the Fed Chair Janet Yellen’s testimony before the Senate Banking Committee, later during NY session, which might provide some momentum trade opportunity for short-term traders.
Technical levels to watch
On the downside, $1277-75 band seems to provide immediate support, below which the metal seems to extend the corrective move immediately towards $1262-60 support. Failure to hold $1260 support seems to pave way for a further downfall towards retesting 50-day SMA support around $1250 region.
On the flip side, $1290-92 zone remains immediate strong resistance, which if conquered would confirm retake of $1300 important psychological mark, thus confirming resumption of the ongoing bullish momentum for the bullion.