An impressive rally for gold with 568 pips, $56.80, since Dec. 12, after plunging to 1236.55 low. On the other hand, the U.S. dollar bears are still in action, clocking 92.33, lowest since four weeks, still pushing gold higher today with 1293.35 high for today.
Technically, with 5-EMA crossing above 10-EMA and 20-EMA indicating that gold is expected to expand the upside ride if the precious metal managed to close 2017 session above 1290, which will indicate a weekly bullish engulfing candle for previous bear candles. But more importantly is the December 2017 monthly candle, which is shaping a bullish grabber that signals for a retesting of 2017's highs.
U.S. dollar and XAUUSD Technical Overview:
MAR US DOLLAR
Closing price: (92.80)
Target price: 92.73 (Achieved
Resistance levels: 92.99-93.03
Support levels: 92.58-92.54
Trend: Down
Swing Target: 92.54
Range Reversal: 0.44
Comment 1: The market is showing a breakout under a previous daily swing low and should quickly extend selloffs. Failure to extend the breakout now alerts for a bear failure. A close back over 93.06 signals a breakout failure and turnaround.
2: Yesterday's close signals a breakout under a previous daily swing low and should prompt continuation selloffs over the next one to three days. Sustained trade under the previous low will help motivate selloffs. Corrections should not close above 93.06 to maintain the breakout.
3: The downside objectives for this formation range from 92.54 to 92.41 with a close over 93.10 is needed to negate a bear trading stance.
Gold Technical Overview:
Closing price: 1287.05
Target price: 1289.74 (Achieved)
Resistance levels: 1291.82-1295.50
Support levels: 1287 1281.41-1279.11
Trend: Up
Swing Target: 1303.30
Range Reversal: 12.21
Comment 1: Historical analysis of this minor swing pattern shows a definite bullish bias for today's action, with the odds of this market taking out yesterday's high in the next two trading sessions around 71 percent.
2: The market is challenging a previous daily swing high and may attempt a breakout. Closing beyond 1292.50 calls for continuation rallies. A failure around 1292.50 cautions for a reactionary setback.
3: The upside target zone for this pattern is from 1303.30 to 1345.70 with a close under 1255.44 needed to negate a bull trading stance.
4: The market is within proximity of this week's projected resistance range of 1307.90-1295.18, which may provide a likely zone for topping action or setbacks.