FX.co ★ Technical analysis of Gold for May 20, 2015

The strong housing data pushed the commodities like gold and crude to lower levels from the recent highs. The metal closed at the lowest level in a week after the strong US dollar. Today, ahead of the FOMC meeting, the yellow metal is trading at $1,208.50 compared to $1,207.40 Tuesday's close. The nearest support is found at $1,205.50 rounded to $1,205.00. Intraday resistance is seen at $1,212.00, $1,217.50, and $1,223.00. The weekly resistance is seen at $1,233.00 100Wema. We advised buying above $1,200.00 again at $1,210.00 and $1,220.00 with a final target at $1,233.00 (ref: May 14th article). The metal made a high at $1,232.00 rejected at 100Wema and fell to 100Dema. Today, we expect wild moves ahead of the FOMC meeting. The level of $1,205.00 acting as trend decider because100Dema and descending trend-line is found there. At yesterday's session, the metal pauses the 5-day winning streak. In case the key support level is taken off $1,200, the price fill reach $1,198.00 and $1,192.00 in a day or two. The metal is trading below 20Wsma $1,213.00. For bulls, safe buying will trigger above $1,212.00 at $1,217.00, $1,219.00, and $1,223.00. Risky traders can buy with sl $1,205.00 cmp $1,208.50.

To contact the author of this analysis, please email- joseph.wind@analytics.instaforex.com