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.

This article was originally posted on FX Empire


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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