As the correction to yesterday’s growth, the USD is falling today, which is also affecting the price of oil and precious metals.
According to the latest news from the meeting on Greek crisis, EU leaders want to strike a deal with Greece before the end of the day and ahead of tomorrow’s summit of the heads of the EU. Should the deal be made, the pressure on gold would increase.
Yesterday, August gold futures on COMEX fell by 0.6% to $1176.60 per Troy ounce.
Markets remain in flat while participants are waiting for the decision on Greece’s solution. The pair XAU/USD is trading at the opening level of 1178.40 and its daily volatility is only 6.40 USD.
Support and resistance
On the daily chart, the pair is moving along the range restricted by resistance levels 1225.50 (50% Fibonacci), 1214.00 (EMA200), 1207.50 (38.2% Fibonacci), 1204.25 (EMA144) and support levels 1170.00, 1161.00, 1149.50 (Fibonacci 0%).
The price bounced off the level of 1185.25 (23.6% Fibonacci to the upward movement correction) and is falling towards 1143.00 (2015 low). On the 4-hour and daily charts OsMA and Stochastic are in the sell zone, however, on the 4-hour chart the impulse is weakening. Wait for the indicators to resume downward movement on the 4-hour chart before opening short positions.
Support levels: 1149.50, 1161.00, 1170.00.
Resistance levels: 1185.25, 1193.00, 1197.50, 1204.25, 1207.50, 1214.00.
Open short positions from the current levels and from 1181.25, 1185.25, 1190.00 with targets at 1170.00, 1161.00, 1149.50 and stop-loss at 1198.00.
Open long positions after the breakout of 1204.25 with targets at 1207.50 (38.2% Fibonacci), 1214.00.