17.10.201405:37 Forex Analysis & Reviews: Trading recommendation on Gold of October 17, 2014

The strong US data gave strength to the greenback and pushed the yellow metal further down from the key resistance zone at $1,240-$1,250 levels. In the past few days the metal was supported by IMF concerns, slowing German economy and the cooling of the bets on the Fed interest rate hike in the near term. Gold is still holding the triple bottom near $1,180 levels. In yesterday's session the metal made a high at $1,244.80 facing strong resistance at 50Dsma $1,252. As of now today the metal took support at $1,236.60 levels. In case, if the metal closes above $1,252 on a daily basis, then only it can rally up to $1,264, $1,274, $1,278 and $1,285 levels. The short- and medium-term trend still looks bearish. Alternatively on the down side, in case if the metal breaks below $1,238 it has support at $1,235, $1,232 and $1,217 levels. In the daily chart, the stochastics is indicating selling.

For an intraday view, the prices are trading below 12ema and 35DEMA. In Asia's session the metal was rejected at 35DEMA and is trading below 12ema as well. Until the metal trades below $1,245, bears have an upper hand. If the metal sustains above $1,245 it can test $1,249, $1,254 and $1,257 levels. On the down side it has support at $1,235, below this, $1,231, $1,228, $1,223.50 and $1,221.70 will act as support levels. We can see weakness below $1,235 and selling pressure, below $1,231 levels.

Buying above $1,245