Strong USD weighs on Gold, following the an upbeat manufacturing and job data in the US.ADS Securities’ analysts a bearish technical picture ahead.
19 May, ADS Securities – After trading higher for five consecutive sessions, the yellow metal lost ground yesterday and closed at $1252.80, amid a stronger greenback following an upbeat manufacturing and job data in the US.
Strong USD weighs on Gold – what is next for yellow metal?
On the 1H chart, the metal is trading with a negative tone, indicating at presence of weakness in the near term. Additionally, the MACD is tranquil at a lower level below its centreline, further confirming the above stance. Key technical support is located at the $1245 level, followed by the $1241 where EMA 200 is placed and $1239 levels. A clear breach below the latter might trigger further acceleration to the downside.
On the upside, important resistance is situated at the $1250 level where EMA 55 is trading, followed by the $1254 and $1258 levels. A surge above the latter might lead to positivity in the precious metal.
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