Anil Panchal
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Technical Overview of Gold, Silver & US Dollar Index : 21.12.2018


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Successful break of 200-day SMA fall short of clearing the $1266-67 horizontal-resistance, which in-turn drags the Gold presently towards aforesaid SMA figure of $1252 and then to the $1250 mark. In case the metal refrains to respect the $1250, the $1240-38 may regain market attention as strong support-zone. Though, beak of $1238 might not hesitate fetching the Bullion to $1230 and the $1217 whereas $1212-11 confluence, comprising 100-day SMA & an ascending TL, could restrict the downside afterwards. On the contrary, a D1 close beyond $1267 enables the metal to aim for $1275 and the $1282 numbers to north. Given the prices continue rallying past-$1282, the $1285, the $1288 and the $1293 can act intermediate halts prior to highlighting $1300 and the $1307 on chart.



Silver also surpassed an important resistance, namely the 100-day SMA, for the first time in over six-months but is yet to cross the $14.90 – $15.00 area, which if broken could escalate the recovery to $15.30 and 200-day SMA level of $15.45. Should the quote conquer $15.45 hurdle, the $15.65, the $15.75 and the $16.00 may appear on buyers’ radar to target. Alternatively, the 100-day SMA level of $14.50 and the $14.20 can serve as immediate supports for the metal ahead of pushing sellers to $14.00. If at all Bears keep dominating under $14.00, the $13.88 and 61.8% FE level of $13.73 might become their favorites.

US Dollar Index [I.USDX]

Even after reversing from 97.75-70 region the US Dollar Index (I.USDX) didn’t close beneath an upward slanting support-line stretched since April, not to mention about 96.15-10 horizontal-line. As a result, chances of witnessing a pullback to the 97.00, the 97.30 and the 97.55 seem brighter. In case 97.55 fail to limit the index upside, the 97.70-75, the 98.00 and the 61.8% FE level of 98.60 could please the Bulls. Meanwhile, daily closing below 96.10 can trigger the index dip to 100-day SMA level of 95.95 and then to 95.50. It should also be noted that the gauge’s sustained downturn past-95.50 may reprint 94.80 and the 94.40, including 200-day SMA, as quotes.

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