Gold edging down to complete retracement – FX Leaders Buy Limit

Gold turned bullish as the U.S. dollar declined against a basket of major currencies after concerns arose of concessions by Canada that would settle disputes over revising the North American Free Trade Agreement. As you know, gold and dollar share a negative correlation, therefore, a dip in the dollar index cause buying in gold.

Technically, gold entered the overbought zone, signaling bulls may initiate profit-taking ahead of the U.S. Inflation data. So, we just applied the Fibonacci retracement indicator on gold’s hourly chart. Gold may have a significant support at 38.2% Fibo level of $1,202. That’s where I’m looking to place my buying limit to target $1,207.

Gold – XAU/USD – Technical Levels

Support Resistance
1196.3 1212.21
1186.54 1218.36
1170.63 1234.27
Key Trading Level: 1202.45