8 Apr 2015
Gold might drop to $1195.00 – FXStreet
FXStreet (Barcelona) - FXStreet Editor and Analyst, Omkar Godbole, remains of the view that Gold might drop to $1195.00/Oz if USD Index stages a rebound.
Key Quotes
“Gold prices shot higher to USD 1224/Oz levels in the early part of the week, breaching the inverted head and shoulder pattern identified on the 4-hour chart. However, the formation failed as prices retreated to USD 1210/Oz levels.”
“A rising trend line support is seen around USD 1200/Oz levels, breach of which shall open doors for a re-test of 50-DMA located at USD 1195.00/Oz.”
“The 4-hour chart also shows, a failure of the inverted head and shoulder pattern, with a bearish RSI.”
“The hourly RSI has also turned bearish, while the daily RSI has breached the rising trend line."
“Given the possibility of a rebound in the USD index, coupled with the failure of the inverted head and shoulder formation and other bearish technical factors, we could see Gold drop to its 50-DMA at USD 1195.00.”
“In case of a fresh dovish surprise in Fed minutes, the metal could re-test 1220 levels, although the minutes are unlikely to provide any major surprises.”
Key Quotes
“Gold prices shot higher to USD 1224/Oz levels in the early part of the week, breaching the inverted head and shoulder pattern identified on the 4-hour chart. However, the formation failed as prices retreated to USD 1210/Oz levels.”
“A rising trend line support is seen around USD 1200/Oz levels, breach of which shall open doors for a re-test of 50-DMA located at USD 1195.00/Oz.”
“The 4-hour chart also shows, a failure of the inverted head and shoulder pattern, with a bearish RSI.”
“The hourly RSI has also turned bearish, while the daily RSI has breached the rising trend line."
“Given the possibility of a rebound in the USD index, coupled with the failure of the inverted head and shoulder formation and other bearish technical factors, we could see Gold drop to its 50-DMA at USD 1195.00.”
“In case of a fresh dovish surprise in Fed minutes, the metal could re-test 1220 levels, although the minutes are unlikely to provide any major surprises.”