Gold Prices at 4-Week Highs - 28 December 2017

Thursday, 28 December 2017 6:14

Gold prices ended Wednesday’s session up $4.34 an ounce, supported by a lower U.S. dollar index. XAU/USD continued to rally and hit four-week highs in Asia trade today. Pending home sales were better than expected but the Conference Board’s consumer confidence index came out below forecasts.

The bulls still have the near-term technical advantage, with the market trading above the the Ichimoku clouds on the 4-hourly and the hourly time frames. Positively aligned Tenkan-Sen (nine-period moving average, red line) and Kijun-Sen (twenty six-period moving average, green line) lines on both charts as well as Chikou Span (closing price plotted 26 periods behind, brown line)/Price crosses in the same direction are also inspiring the technically biased buyers. It seems that there will be more upside price action, but the resistance in the 1296/4 area may trigger some profit taking. The bulls will have to overcome this barrier in order to set sail for 1302/0.

XAUUSD Daily

To the downside, the initial support sits at 1286, followed by 1284/3 where the top of the hourly cloud stands. If the support in the 1284/3 zone is broken, look for further downside with 1281 and 1279.50-1278.50 as the next targets. Below there, the bulls will be waiting in the 1276/5 area.

XAUUSD h4

Alp Kocak has been trading Forex since 2003. He writes technical analysis based on Japanese candlesticks and Ichimoku Kinko Hyo.

DailyForex Newsletter
0 User Reviews

Registration is required to ensure the security of our users. Login via Facebook to share your comment with your friends, or register for DailyForex to post comments quickly and safely whenever you have something to say.

Log in | Create a DailyForex.com Account Now