Yellow metal slipped from 2-week highs and is trading below $1,200.00 mark after the Yellen’s testimony. Chair Janet Yellen said she expects the Federal Reserve to raise interest rates this year. That subsequent increase will be gradual without following a predictable path. “I expect that conditions may warrant an increase in the federal funds rate target sometime this year,” she said.
After the initial increase, officials won’t follow “any predetermined course of tightening” that involves similar-sized increases at regular intervals, Yellen said on a research conference sponsored by the Federal Reserve Bank of San Francisco, San Francisco, California March 27, 2015. Pending home sales in February increased to their highest level since June 2013 as sizeable gains in the Midwest and West were offset by smaller declines in the Northeast and South, according to the National Association of Realtors. These factors helped USD to rebound.
The metal price rejected at 20Wsma. Parallel support was found at $1,179.00. We recommend selling below $1,179.00 with targets at $1,176.00, $1,170.00, $1,167.00, and $1,164.00. Intraday resistance is seen at $1,191.00 and weekly resistance is seen at $1,197.00.Until the metal closes below $1,197.00 bears have the upper hand. The 20Dsma is found at $1,176.50. It is likely to lead to bears’ grip in case the price closes below this level. In the hourly chart, lower lows and lower highs formation is expanding. Today, traders eye on consumer confidence index. In case of negative reading, the metal will extend its fall towards $1,176.50 and $1,168.00. It can bounce towards $1,194.00.
Trade:Selling below $1,179.00
The material has been provided by InstaForex Company – www.instaforex.com