Gold is trading within the wide sideways consolidation, as its investment attractiveness is growing due to the instability of a number of main currencies.
The instrument is a shelter asset for the traders. In April, USD significantly decreased due to the negative inflation and employment market data releases. As a result, EUR and GBP significantly strengthened, as gold price is gradually growing. Last week, it rapidly grew but did not break the strong resistance level of 1361.50. Later, it consolidated within the narrow sideways channel of 1335.00–1350.00.
At the end of the last trading week, there is no key release in the economic calendar, which can affect the situation significantly.
Support and resistance
Due to the lack of strong catalysts, the instrument can consolidate within the sideways consolidation. Afterward, the price can grow to the level of 1374.50 (last July maximum). In the long term, the price stays in the upward trend.
Resistance levels: 1357.00, 1361.40, 1366.00, 1374.50.
Support levels: 1345.85, 1335.00, 1330.50, 1325.50, 1316.15, 1313.50.
It is relevant to increase the volume of long positions at the current level with the targets at 1366.00, 1374.50 and stop loss 1326.50.
|Take Profit||1366.00, 1374.50|
|Support levels||1313.50, 1316.15, 1325.50, 1330.50, 1335.00, 1345.85, 1357.00, 1361.40, 1366.00, 1374.50|
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