As you must already know, the direction of Gold is mainly dependent on the Price action of DXY (US Dollar index). So first, we take a look at the US Dollar index.
NZD/USD aims higher
2019-12-27 • Updated
Market’s risk sentiment is quite positive, so commodity currencies are strengthening versus the USD. NZD/USD has been performing really well since the start of December as it managed to break above the line connecting 2018 and 2019 highs. In addition, last week it closed above the 50-week MA at 0.6580 despite testing lower levels. Moreover, the pair ended Thursday above 78.6% Fibo of the July-October decline at 0.6660. The natural target is at 0.6730 (the declining 100-week MA). The next resistance after that will be at 0.6790 (July high).
Support is at 0.6635 (December 13 high). A decline to 0.6565 (61.8% Fibo) should attract more buyers.
BUY 0.6680; TP 0.6730; SL 0.6660
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