The yellow metal has been extending its losses for three consecutive days. The US dollar rebounded from the lower levels, which dampened the momentum of the metal. After the FOMC minutes, the metal broke the 50Dsma and closed below that. At the FOMC meeting, several participants judged that economic data and outlook were likely to warrant normalization. However, others anticipated that the effects of lower energy prices and the depressed dollar would continue to weigh on inflation in the near term, suggesting that conditions are unlikely to be appropriate for rates hike until later in the year. A couple of participants suggested that the economic outlook would not call for any increase until 2016. Eventually, the interest rate hike is imminent, but the matter is when it comes true. The interest rate hike has a negative influence on the metal. Today, the metal successfully held the previous day's low at the Asian session. Prices are consolidating at $1,192.00 for a day. Below this, 20Dsma is likely to appear at $1,187.00. The trend-change decider level is found at $1,178.00. In case of a daily close below $1,178.00, the current upswing will be cancelled. Intraday support is found at $1,192.00. We recommend selling below $1,192.00 with immediate target at $1,188.00, below $1,187.00 we can expect $1,180.00 and $1,178.00. The panic is going to be triggered below $1,178.00. In the H4 chart, the price fell below the ascending trend line and closed below that. In the hourly chart, we can observe lower highs and lower lows formation. Until the price closes below $1,206.00, the near term favors bears.
Trade: Selling below $1,192.00 targets $1,188.00, $1,180.00 and $1,179.00
The material has been provided by InstaForex Company - www.instaforex.com
