FX.co ★ Technical analysis of Gold for May 22, 2015

The yellow metal rejected at $1,232.00 100Wema and lost $31.00 by now. The metal has been hovering at $1,200.00 after the mixed US data. The USD has been moving higher from the recent low. It gained renewed strength after the US housing data release. Wednesday's FOMC meeting showed that the reulator is not going to raise its interest rate in June. We hope for September or the end of 2015. The metal is trading below 20Wsma $1,212.50. On a weekly basis, the metal made a double top at $1,223.80. A weekly close above $1,233.00 is likely to ignite afresh rally towards $1,250.00 immediately. In the daily chart, gold managed to hold above 20Dsma. Support is found at $1,200.00 and $1,195.00 50Dsma. Intraday resistance is seen at $1,214.50. Until the metal closes below $1,214.50, bears are unlikely to try to aim at $1,195.00 and $1,185.00.

Support: $1,203.00, $1,199.00, $1,195.00

Resistance: $1,210.50, $1,214.50, $1,216.50

The real panic will be triggered below $1,199.00 at the intraday session. Buying momentum is seen above $1,211.00. Within the intraday session, the metal can stretch max to $1,215.00 and $1,218.00 in the extreme case. Whereas, 20Wsma is found at $1,213.00, bulls will try to close above this level. In case the metal closes above $1,213.50 on Monday, opening may be seen around $1,217.00. On the downside, in case the metal closes below $1,195.00, bears can aim at $1,185.00,$1,178.00, $1,173.00, and $1,166.00. We have been repeatedly advising $1,165.00 as the key level for further down fall towards new lows. In the hourly chart, positive divergence has been developing.

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