FX.co ★ Technical Analysis of Gold for July 04, 2014

GOLD

The US NFP and ECB comments made the yellow metal drop 1%. The metal chopped the 200 days Ema and managed to close above it. In Asia's session, the metal is trading at $1,319.40 levels. As we recommended yesterday, positional traders should buy only above $1,335. So far, today we recommend the same thing. In the daily chart, the RSI is still standing at an overbought level. The trading pattern is framed between $1,309-$1,332 levels.

On anintraday basis, the metal is trading below the hourly moving averages. The metal is facing resistance at $1,321 (8hr high) and support at $1,318.40 (8hr low). It has a rough road ahead at $1,320.90 above $1,321.90 (12 hr high), $1,323.90 (34 hr Sma) and $1,326.20 (35 Hr Dema). We recommend trading at these levels or long only above $1,326.50 for $1,331.70 above $1,334 levels. Sell below $1,318.40 targets $1,315.50 and $1,310. We can see heavy selling pressure below $1,315.

Safe traders sell below $1,318.40