Gold Breaks Pennant After Long Consolidation Sessions
FxGrow | Dec 06, 2017 10:01
After 60 consolidation session fluctuating between 70 and 90 levels, gold has finally broken the pennant that it has been confined within with sideways range and congestion. The precious metal edged downward on Monday, then peeked to 1277 yesterday, but failed to press forward, and dipped to a 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 a Fed rate hike, pushing the DXY to a 93.45 high today. On the other hand, failure between the U.K. 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 1270s to maintain bear trend forces. A push over 1280.50 stops pressing bear forces, but only a close over 1286.00* highlights a lasting turn to higher prices.
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