14.05.201505:02 Forex Analysis & Reviews: Technical analysis of Gold for May 14, 2015

The yellow metal gave strong momentum after 2 weeks of consolidation in a tight range. The weak US data pushed the metal towards $1,218.00. Gold managed to close above $1,200.00. The US retail sales turned to be flat. This made USD softer and helped the metal price to spike. Today, traders eye unemployment claims.At yesterday's session, the metal spiked to $1,218.00 exactly rejected at 138.2 FE and 200Dsma. If today the US delivers disappointing data, we can see $1,223.50 and $1,226.00 initially. The major resistance zone seems between $1,219.00 and $1,223.00. The previous swing high is found at $1,223.80. In case the previous swing is taken off, we expect big spikes to continue in the near term. We can observe positive divergence in the weekly chart. This week, the metal managed to trade above 20Wsma $1,211.00. A daily close is seed above $1,224.00. We expect $1,233.00 to be reached in a day or two. At yesterday's session, we recommended buying above $1,200.00. Today, buyers can bid safe above $1,220.00 with small targets at $1,223.00 and $1,224.00, later $1,230.00 and $1,233.00. Support is found at $1,211.00 and $1,207.00. Risky traders can sell below $1,210.00 and safe traders can sell below $1,208.00 with immediate targets at $1,205.00 and $1,200.00, and later targets at 1195.00 and 1190.00. The majors EUR/USD and GBP/USD managed to close above 20Wsma. In case gold manages to close above 20Wsma $1,211.00, we expect $1,233.00,$1,244.00, and $1,250.00 to be hit in coming weeks.

To contact the author of this analysis, please email- joseph.wind@analytics.instaforex.com