Overview and dynamics
Amid the weak, but the controversial labor market data in the United States in May the dollar fell sharply on the currency market. Gold quotes were up by 2.5%. Spot Price returned to the level above the resistance level 1240.00 (EMA50 on the daily chart, EMA144 on the 4-hour and weekly charts).
Since the opening of the trading day there is a sluggish dynamics in pairs with the USD and XAU/USD pair.
Despite the disappointing NFPR data (+38,000 jobs), the US unemployment rate decreased in May (4.7% against 5.0% in April). This means approximation to full employment in the US population.
OsMA and Stochastic on the daily chart have gone over to the side of the buyers, but on the weekly chart they still recommend short positions. On the 4-hour chart the indicators are also beginning to reverse to short positions.
Further growth of XAU/USD pair is restricted by the strong resistance level 1240.00. If the price starts a downward correction after Friday's growth, it will very quickly return to the support levels 1218.00 (Fibonacci level 23.6%), 1205.00 (EMA144), 1195.00 (EMA200 on the daily chart).
Growth above the resistance level 1255.00 (EMA200 on the weekly chart) will cancel this scenario.
A more likely scenario is still the resumption of declining of gold prices. However, today, XAU/USD pair is expected to be mostly flat.
Investors are now trying to determine the future direction of monetary policy in the United States.
A downtrend may resume in the case of a breakdown of the level 1195.00. Growth above the level 1255.00 increases the risk of further increase of gold.
Support levels: 1218.00, 1205.00, 1200.00, 1195.00
Resistance Levels: 1240.00, 1255.00, 1280.0, 1300.00
Buy Stop 1250.00. Stop-Loss 1235.00. Targets 1255.00, 1263.00, 1280.00, 1300.00
Sell Stop 1235.00. Stop-Loss 1245.00. Targets 1200.00, 1193.00, 1190.00
Indicators recommended short positions
Near the level 1240.00