HomeContributorsTechnical AnalysisGold Price Breaks Key Resistance, Dips Remain Supported

Gold Price Breaks Key Resistance, Dips Remain Supported

Key Highlights

  • Gold price started a fresh increase above $1,288 and $1,300 resistances against the US Dollar.
  • There was a break above a key bearish trend line at $1,281 on the 4-hours chart of XAU/USD.
  • The US Factory Orders in April 2019 declined 0.8%, less than the -0.9% forecast.
  • The US ISM Non-Manufacturing Index in May 2019 is likely to remain stable at 55.5.

Gold Price Technical Analysis

The $1,275 level acted as a strong support and gold price bounced back against the US Dollar. The price broke the key $1,288 and $1,295 resistance levels to move into a positive zone.

The 4-hours chart of XAU/USD indicates that the price surpassed the $1,300 resistance area and the 100 simple moving average (4-hours, red). There was a close above the $1,310 level and the 200 simple moving average (4-hours, green).

The bulls gained traction, resulting in a solid upward move above the $1,320 level. The price traded close to the $1,300 level and it is currently consolidating gains.

On the upside, an immediate resistance is near the $1,330 and $1,335 levels. If there is an upside break above $1,335, the price could accelerate above the $1,340 level.

On the downside, an initial support is near the $1,316 level or the 23.6% Fib retracement level of the last wave from the $1,275 swing low to $1,329 swing high. If there is an extended downside correction, the price might find bids near the $1,300 support area.

Looking at the major pairs, EUR/USD gained momentum above the 1.1225 resistance level and GBP/USD is slowly recovering above the 1.2650 level.

Economic Releases to Watch Today

  • Germany’s Services PMI for May 2019 – Forecast 55.0, versus 55.0 previous.
  • Euro Zone Services PMI for May 2019 – Forecast 52.5, versus 52.5 previous.
  • UK Services PMI for May 2019 – Forecast 50.6, versus 50.4 previous.
  • US Services PMI for May 2019 – Forecast 50.9, versus 50.9 previous.
  • US ISM Non-Manufacturing Index for May 2019 – Forecast 55.5, versus 55.5 previous.

 

Titan FX
Titan FXhttp://titanfx.com
Titan FX is a technology driven online ECN forex and commodities broker that provides traders with next generation trading conditions, institutional grade spreads, fast trade execution, deep top tier liquidity and the security of financial registration and oversight.

Featured Analysis

Learn Forex Trading