24.04.201407:29 Forex Analysis & Reviews: Technical analysis of gold for April 24, 2014

Economists have been disappointed by a string of weaker-than-expected home sales reports. Sales of existing homes dropped in March. Sales of new homes reported Wednesday were down 13.3% from a year earlier to their lowest level since last July.

Technical view-

The metal is under pressure after the dollar strengthened. The metal is in a down trend from $1,320 levels. The metal made a double bottom at $1,277 levels, we expect it will pull back towards $1,292 and $1,300 levels. From last week we have been recommending to buy with sl $1,277. The same we are recommending today. In Asia's trading session the metal is trading at $1,285 levels. Currently, the trading is in a range between $1,289-$1,277. Break out either side will create further room towards $1,292 and $1,300 or to the down side to $1,265-$1,250 levels. We expect for the rest of the week the metal will give a pull back. The pair is facing resistance at $1,289 levels. Safe traders can buy above the $1,289 for $1,292 , $1,295, $1,298 and $1,300 levels. As we recommended earlier, risky traders can hold with sl $1,277. If any news flow favors the dollar, the metal will drift lower to even $1,265-$1,260-$1,250 levels (below $1,275). Bears can start selling below $1,275 for targets $1,265, $1,260, and $1,250 levels, in the least case $1,230 and $1,200.

In the H4 chart, RSI has been in consolidation phase from last week. I expect the metal will pull back up to $1,300 and $1,305 levels.

Safe traders can buy above $1,292, $1,295, $1,298 and $1,300 even $1,305, CMP $1,285.

Risky traders can hold with sl $1,277.

Sell below $1,275 for targets at $1,265, $1,260 and $1,250.