Technical Outlook Of Gold, Silver & US Dollar Index: 26.10.2017

GOLD

Following its failure to sustain $1300 break, the Gold prices are now declining towards testing the 200-day SMA level of $1259 ahead of the crucial US GDP release. Given the upbeat growth figure drags the yellow metal beneath $1259 on a daily closing basis, ten-month old ascending trend-line support of $1248 might confine its further downside, which if not respected could open the door for the bullion’s plunge in direction to $1235 & $1228. Alternatively, a day’s close beyond $1273 may trigger the Gold’s pullback to $1283 and then the downward slanting TL figure of $1288, breaking which it can rise to $1296 and the $1305 resistances. In case of the quote’s sustained trading above $1305, the $1314, the $1322 and the $1333 are likely consecutive north-side numbers to appear on the chart.

SILVER

Even after almost clearing the $16.70 TL support, Silver might find it difficult to break the $16.59 support-line, which if conquered can fetch it to $16.50 and then to the $16.30 rest-points. Should the downside pressure breaks $16.30 mark, the $16.00 and the $15.70 can become sellers’ favorite. Meanwhile, $16.90 and the $17.05 may entertain short-term buyers during the metal’s pullback, breaking which 50-day SMA level of $17.195 and the $17.235 trend-line resistance gain importance. If at all the Silver surpasses $17.235 at a daily close, $17.40 & $17.60 could please the Bulls.

US Dollar Index [I.USDX]

With a successful clearance of 94.10-15 horizontal-line, the US Dollar Index (I.USDX) is trading beyond 100-day SMA for the first time in more than seven-months; however, the gauge’s further upside is likely to be challenged by the resistance-line of near-term ascending trend-channel, at 95.35. Given the index’s ability to conquer 95.35 resistance, the 95.55, the 96.20 and the 96.50 might offer intermediate halts during its upward trajectory towards 200-day SMA level of 96.90. On the downside, 94.60 and 94.30 are expected nearby supports that can be availed if the profit-booking takes place after US GDP release. Suppose the sellers continue dominating the index after 94.30, the 94.10-15 area gains the lime-light, break of which may again fetch it to 93.60 and then to the channel-support of 93.40. Moreover, the greenback indicator’s downturn beneath 93.40 can drag it to the 92.70 support-mark.

Cheers and Safe Trading,
Anil Panchal