Gold edging down to complete retracement – FX Leaders Buy Limit
Arslan Butt • 1 min read
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
Key Trading Level: 1202.45