After significant fall in the beginning of December gold price reversed and it has now been growing during two last trading weeks.
The main catalyst for the strengthening is the fall of the investors’ interest in USD due to the slowing of USA Fed’s monetary policy tightening and poor macroeconomic key sector releases. In these situations the demand on the shelter assets, metals and energy usually strengthens, which has happened at the end of the year. As there is lack of key releases in the nearest future, the price will be moving due to trading moods.
Support and resistance
In the short term, the upward momentum can develop to the resistance levels of 1285.00, 1290.00, but the downward trend will form after. Despite the significant growth, the instrument is in the correction within a wide downward channel. Even if USD significantly fall in 2018, the pair is expected to fall from the levels of 1285.00, 1290.00.
On the weekly chart the middle line of Bollinger bands consolidated at the level of 1285.00, which characterizes it as the strongest resistance level and confirms the forecast.
Resistance levels: 1280.00, 1283.00, 1285.00, 1290.00, 1292.00, 1298.00, 1300.00.
Support levels: 1274.00, 1270.00, 1262.00, 1256.00, 1254.00, 1243.50.
It is better to open pending short positions from the levels of 1285.00, 1290.00 with the targets at 1270.00, 1262.00 and stop loss at 1293.50.
|Entry Point||1285.00, 1290.00|
|Take Profit||1270.00, 1262.00|
|Support levels||1243.50, 1254.00, 1256.00, 1262.00, 1270.00, 1274.00, 1280.00, 1283.00, 1285.00, 1290.00, 1292.00, 1298.00, 1300.00|
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