Yesterday gold resumed its fall after a short growth on Tuesday.
The price was pressured by strong macroeconomic data that came out in the US. Durable Goods Orders in October grew by 3%, against forecasted growth by 1.5%. The number of Initial Jobless Claims fell from 272 to 260 thousands and also exceeded forecasts. In addition, according to preliminary figures, Markit Services PMI in November increased from 54.8 to 56.5 points. On the other hand, Reuters/Michigan Consumer Sentiment Index fell from 93.1 to 91.3 points that was worse than predictions.
Support and resistance
Bollinger Bands on the daily chart is turning horizontally while the price range is narrowing. MACD is growing and giving a weak buy signal. Stochastic remains near the oversold zone.
The indicators recommend waiting for clearer trading signals.
Support levels: 1070.00 (local low), 1064.64 (18 November low), 1060.00.
Resistance levels: 1073.95 (local high), 1077.20, 1080.84 (24 November high), 1087.87 (20 November high), 1095.53.
Long positions can be opened after the breakout of the level of 1081.32 (with the appropriate indicators signals) with the target at 1098.00 and stop-loss at 1079.00. Validity – 2-3 days.
Short positions can be opened after the breakdown of the level of 1070.00 with the target at 1060.00 and stop-loss at 1076.00. Validity – 2-3 days.