After a significant decline at the beginning of the last trading week, the price for gold hit the key support level of 1309.00, reversed and rushed up.
The upward momentum increased, and, in a few days, gold gained more than USD 15. Now the instrument has almost reached the upper border of the descending range and important resistance levels of 1330.50, 1335.00. The pair remains in the downward channel. The growth was due to a decrease in the investment attractiveness of USD due to the lack of key releases from the United States.
Important releases, namely data on inflation, retail sales, the labor market, and industrial production, will be released from tomorrow to the end of the trading week.
Support and resistance
Most likely, the current growth is a short-term correction, after which the instrument will continue to trade in a downward range. Started in late January, growth in demand for the dollar will continue for a long time, which means that the price of gold will continue to decline within the current channel with targets of 1300.00, 1298.00, in the medium term – of 1274.00.
Technical indicators on D1 chart confirm the forecast for the further decline, MACD points to a sharp decline in the volume of long positions, Bollinger Bands reversed down.
Support levels: 1316.15, 1313.50, 1309.00, 1304.50, 1300.00, 1298.00, 1292.00, 1290.00.
Resistance levels: 1330.50, 1335.00, 1345.85, 1350.74, 1357.00, 1366.00.
In this situation, short positions may be opened from the current level with targets at 1300.00, 1298.00 and stop-loss at 1335.90.
|Take Profit||1300.00, 1298.00|
|Support levels||1290.00, 1292.00, 1298.00, 1300.00, 1309.00, 1313.50, 1316.15, 1330.50, 1335.00, 1345.85, 1350.74, 1357.00, 1366.00|
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