FX Promo Daily Analysis 13 October 2016

GOLD - Near-term price action remains congested under 200SMA

GOLD

Near-term price action remains congested after recovery from $1241 low found solid resistance at $1265 and closing of past four days was below 200SMA that currently lies at $1262 and marks significant barrier.

The downside is expected to remain under pressure while 200SMA caps, with hourly higher base at $1250, marking pivotal support and guarding key near-term support at $1241.

Mixed near-term studies maintain directionless mode, with violation of boundaries at $1250 and $1262, needed to generate initial signals for fresh direction.

Sustained break above 200SMA and recovery top at $1265 would open way for extended correction towards next strong barrier at %1280 (Fibo 38.2% of $1343/$1241 fall).

Res: 1262; 1265; 1269; 1280

Sup: 1253; 1250; 1241; 1234