The yellow metal edged lower and probably made a double top at $1,214.70. At yesterday’s session, the metal managed to made a higher low at $1,178.00 on a closing basis, but intraday it made a low at $1,169.70. The previous low was at $1,174.90 and then rounded to $1,174.00. The FOMC meeting delivers a hawkish tone on the US economy. The first quarter slow growth was a temporary event. It makes the traders consider booking profits. At yesterday’s session, the US jobs data surpassed expectations.That was the lowest level for initial claims since April 15, 2000. This factor as well added more pressure on the metal and turned the bullish signals on the US economy. The technical resistance seems at $1,191.00 50Dsma, $1,198.00 20Dsma, and $1,200.00 uneconomical level. The daily RSI and stochastic indicated bearish signals. We recommend fresh selling below $1,174.00 with targets at $1,167.00 and $1,164.00 initially. The price has been consolidating for 4 weeks between $1,178.00 and $1,223.00. Finally, it gave the break on the downside and made a double bottom on the four-hour chart and changed the direction. The current trading pattern is formed between $1,174.00 and $1,200.00. Until the price closes below $1,200.00, the probability of another break on the lower side is high. At the intraday session, we recommend buying above $1,185.00 with small targets at $1,190.00, $1,192.00, and $1,195.00. In the latter case, it can retest $1,197.00 and $1,200.00. Intraday support is seen between $1,177.50 and $1,176.50. From my viewpoint, the price has been making a base at $1,175.00. On the daily chart, lower highs are being formed. The weekly trading pattern is framed between $1,174.00 and $1,215.00. Weekly strong support is found at $1,166.00. If the price closes below 1166.00, we can expect a fresh 2015 low around $1,135.00.
Trade: buying above $1,185.00.
The material has been provided by InstaForex Company – www.instaforex.com