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Technical Checks For Gold, Silver & US Dollar Index (I.USDX): 10.02.2017



On Thursday, US President, Donald Trump, promised to provide a "phenomenal" tax plan to help US business houses and provided noticeable strength to the US Dollar, which in-turn dragged Gold prices from $1245 resistance-mark. The yellow metal did extend its pullback during Friday and is presently resting around 100-day SMA figure of $1222, near to $1220-18 horizontal-support, comprising 38.2% Fibonacci Retracement of its July – December downturn. Given the present greenback strength result into further weakness of the Bullion prices towards breaking $1218, $1206 might become an intermediate halt before the $1202 - $1200 important support-zone, including near-term channel-support, limit the metal's downside. In case if the quote drops further below $1200 round figure, chances to witness $1195 & $1187 can't be denied. Alternatively, $1230 & $1236 are likely immediate barriers that can limit the precious metal's immediate advances, breaking which $1245 & $1248-50 can please buyers. However, channel-resistance line, around $1263, could restrict additional price up-move beyond $1250, failing to which can flash $1275-76 on the chart.


Unlike Gold, which is already trading at support, Silver has a bit more gap from immediate upward slanting TL mark of $17.45 and its already reversing towards challenging $17.70 adjacent resistance. Should the industrial metal surpasses $17.70, the $17.85 and channel-resistance of $18.00 are likely important upside levels to observe, clearing which could trigger its north-run towards 100% FE figure of $18.35. Meanwhile, the metal's break of $17.45 trend-line can quickly drag it to $17.30-25 zone, breaking which channel support-line of $17.00 grabs market attention. In case if the prices refrain to reverse from $17.00, it becomes wise to expect $16.65 & $16.25 supports' come-back.

US Dollar Index (I.USDX)

Having successfully bounced from 100-day SMA, the US Dollar Index (I.USDX) seems well in direction to challenge 101.30-35 resistance-zone, encompassing 50-day SMA & 23.6% Fibonacci Retracement of its June 2016 – January 2017 upside. Given the greenback gauge manage to surpass 101.35, it becomes capable enough to meet 101.85 & 102.00 prior to confronting 102.50-55 horizontal-line. In case if strong upside momentum helps the index to break 102.55, the 103.00 & 103.40 could act as buffers during its rise towards 104.00 round figure. On the downside, the 100.00 psychological magnet, quickly followed by 100-day SMA number of 99.80 & 38.2% Fibo mark of 99.70, may continue limiting the gauge's short-term declines. Should bears govern prices below 99.70, the 99.00 round figure and 98.50 can come-back on traders' radar.

Cheers and Safe Trading,
Anil Panchal

MTrading Review

Source: https://www.mtrading.com/analytics/technical-analysis/technical-checks-for-gold-silver-us-dollar-index-i-usdx-10-02-2017
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