Technical Update For Gold, WTI Crude Oil & US Dollar Index: 30.06.2017

GOLD

Ever since the Gold prices dropped below $1258.50 – $1259 horizontal-line during mid-June, it never surpassed the same while on the downside $1236.50 – $1235.50 region seems limiting the yellow metal’s near-term moves. Considering the week-long descending trend-line, chances of the Bullion’s dip to $1241 and then to the $1239 are high but the aforementioned horizontal-line, around $1236.50 – $1235.50, might restrict its following south-run. Given the precious metal’s break of $1235.50, it can quickly decline towards $1230 and the $1225 supports ahead of looking at the $1215-14 support-zone. Alternatively, immediate descending TL resistance, at $1251, can hold the metal’s up-moves confined, breaking which $1255 and the $1258.50 – $1259 area comes into play. Should prices continue rallying after $1259, the $1266 and the $1271 might please the Bulls.

WTI CRUDE OIL

Following its bounce from $42.00 – $42.10 horizontal-area, the Crude prices are now struggling with $45.00 line, break of which could extend its recovery to $45.50, $46.00 and then to $46.60. However, the $47.00, comprising 50-day SMA, might limit the energy’s additional up-moves, which if broken enables buyers to aim for $48.00 and the $48.40 resistances. In case if the quote fails to surpass $45.00 on a daily closing basis, it can revisit $44.20, $43.50 and the $43.00 prior to reigniting the importance of $42.10 – $42.00 region. Given the Bears dominance drag prices below $42.00, chances of witnessing $40.80 on the chart can’t be denied.

US Dollar Index [I.USDX]

Even if twelve-week old descending trend-line depicts the south-run of US Dollar Index (I.USDX), an equally long downward slanting TL, which together with the above line seems forming “Falling-Wedge” bullish chart pattern, at 95.30 now, may limit the gauge’s further declines. Should the index fails to respect 95.30 level, it can dip to 95.00 and then to the 94.40 before pushing sellers to expect 94.00 round-figure. If the greenback gauge sustains its downturn after 94.00, it seems wise to target 93.40 & 93.00 while being short. Meanwhile, 96.30 becomes an immediate resistance for the index watchers to observe, breaking which 96.50, 97.00 and the mentioned TL resistance of 97.30 can gain importance. However, 50-day SMA level of 97.85 can limit the gauge’s up-moves after 97.30 break, which if not respected opens the door for the upward trajectory towards 98.50 and the 98.70 resistance-levels.

Cheers and Safe Trading,
Anil Panchal