At the end of last week the gold price grew significantly, having hit the level of 1100.00. Nevertheless, in the short term, the dynamics has not changed and the pair is still trading flat within a wide price range.
Last Friday gold price grew when US macroeconomic statistics were published. In particular, after weak US GDP came disappointing Employment cost index at 0.2% (the lowest rate since 1982). This data may signal that the US interest rate hike is to be postponed.
Support and resistance
Bollinger Bands on the daily chart indicates the weakening of the medium-term “bearish” trend. The middle MA is still moving down, while the range is narrowing actively. It is better to wait for a clearer situation.
MACD is growing, still giving a moderate buy signal (the histogram is above its signal line). It is recommended to keep and to open new long positions in the short and the very short term.
Stochastic has reacted weakly to the Friday pair growth and is trying to turn down again. Take time to place new orders.
Support levels: 1094.50 (the price is actively testing this level), 1087.00 и 1077.20 (24 July current local low).
Resistance levels: 1101.60, 1105.50 (23 July local high), 1110.00, 1119.00 (20July high), 1134.30, 1156.80.
Open long positions after the rebound from 1094.50 (with appropriate indicators signals) with the target at 1105.50-1110.00 and stop-loss no further than 1085.00.
Alternatively, a strong “bearish” trend may return with the breakdown of 1087.00 and an attempt to hit new record lows. Open short positions with the nearest target at current low 1077.20 and stop-loss at 1094.50.