The price of gold continues growing amid falling stock markets and the weakening US Dollar that remains under pressure due to uncertainty of further Fed steps and significantly lowered probability of monetary policy tightening in the US this year.
Today Fed Chair Janet Yellen will hold a press conference where she is expected to give commentaries regarding future monetary policy. The number of analysts is expecting the regulator to remain cautious which would pressure the USD.
Support and resistance
Bollinger Bands on the daily chart is moving up while the price range is widening. At the same time, the indicator formed a signal for correctional fall as the price has left the range. MACD is growing and giving a strong buy signal. Stochastic is in the overbought zone and trying to turn down.
The indicators recommend waiting for clearer trading signals.
Support levels: 1185.54 (local low), 1179.13, 1174.33, 1170.00 (8 February low), 1162.56, 1156.40.
Resistance levels: 1191.21 (local high), 1195.00, 1200.67 (8 February high).
Long positions can be opened after the breakout of the level of 1200.00 (with the appropriate indicators signals) with targets at 1210.00, 1217.00 and stop-loss at 1189.00. Validity – 2-4 days.
Short positions can be opened after the breakdown of the level of 1180.00 with targets at 1170.00, 1161.00 and stop-loss at 1192.00. Validity – 2-3 days.