Current trend
Prices for gold increased moderately on Wednesday, noting a new local high since June 26. The instrument was supported by weak USD, as well as the continuing tensions in the trade relations between China and the US.
The prospect of further tightening of the Fed’s monetary policy is hampering a steadier growth of gold prices. New comments on this issue will be heard today, when the minutes of the Fed meeting are published. The market is also waiting for the release of the June report on the US labor market on Friday. Aggressive tone of statements in the minutes and a strong report on the labor market can contribute to the return of "bearish" sentiment on the instrument.
Support and resistance
Bollinger Bands in D1 chart demonstrate active decrease. The price range is narrowing, reflecting a sharp change of trend. MACD indicator reversed upwards again and formed a buy signal (located above the signal line). Stochastic grows almost vertically, receiving a strong "bullish" momentum from the growth of the instrument on Tuesday. Currently the oscillator is approaching its maximum levels, which indicates overbought gold in the ultra-short term.
Anyway, the current indicators do not contradict the further development of the "bullish" trend in the short term, so the existing purchases should be left open for some time.
Resistance levels: 1260.75, 1270.11, 1276.87, 1281.73.
Support levels: 1251.15, 1245.61, 1237.60.
Trading tips
To open long positions one can rely on the breakout of the level of 1260.75, while maintaining "bullish" signals from technical indicators. Take-profit — 1276.87 or 1281.73. Stop-loss – 1251.15. Implementation period: 2-3 days.
The development of correctional trend with the breakdown of the level of 1251.15 may become a signal to begin sales with target at 1237.60. Stop-loss – 1260.75. Implementation period: 1-2 days.
Trade
Scenario
Timeframe Intraday
Recommendation BUY STOP
Entry Point 1260.80
Take Profit 1276.87, 1281.73
Stop Loss 1251.15
Key Levels 1237.60, 1245.61, 1251.15, 1260.75, 1270.11, 1276.87, 1281.73
Alternative scenario
Recommendation SELL STOP
Entry Point 1251.10
Take Profit 1237.60
Stop Loss 1260.75
Key Levels 1237.60, 1245.61, 1251.15, 1260.75, 1270.11, 1276.87, 1281.73
Prices for gold increased moderately on Wednesday, noting a new local high since June 26. The instrument was supported by weak USD, as well as the continuing tensions in the trade relations between China and the US.
The prospect of further tightening of the Fed’s monetary policy is hampering a steadier growth of gold prices. New comments on this issue will be heard today, when the minutes of the Fed meeting are published. The market is also waiting for the release of the June report on the US labor market on Friday. Aggressive tone of statements in the minutes and a strong report on the labor market can contribute to the return of "bearish" sentiment on the instrument.
Support and resistance
Bollinger Bands in D1 chart demonstrate active decrease. The price range is narrowing, reflecting a sharp change of trend. MACD indicator reversed upwards again and formed a buy signal (located above the signal line). Stochastic grows almost vertically, receiving a strong "bullish" momentum from the growth of the instrument on Tuesday. Currently the oscillator is approaching its maximum levels, which indicates overbought gold in the ultra-short term.
Anyway, the current indicators do not contradict the further development of the "bullish" trend in the short term, so the existing purchases should be left open for some time.
Resistance levels: 1260.75, 1270.11, 1276.87, 1281.73.
Support levels: 1251.15, 1245.61, 1237.60.
Trading tips
To open long positions one can rely on the breakout of the level of 1260.75, while maintaining "bullish" signals from technical indicators. Take-profit — 1276.87 or 1281.73. Stop-loss – 1251.15. Implementation period: 2-3 days.
The development of correctional trend with the breakdown of the level of 1251.15 may become a signal to begin sales with target at 1237.60. Stop-loss – 1260.75. Implementation period: 1-2 days.
Trade
Scenario
Timeframe Intraday
Recommendation BUY STOP
Entry Point 1260.80
Take Profit 1276.87, 1281.73
Stop Loss 1251.15
Key Levels 1237.60, 1245.61, 1251.15, 1260.75, 1270.11, 1276.87, 1281.73
Alternative scenario
Recommendation SELL STOP
Entry Point 1251.10
Take Profit 1237.60
Stop Loss 1260.75
Key Levels 1237.60, 1245.61, 1251.15, 1260.75, 1270.11, 1276.87, 1281.73