Gold Price Approaching Crucial Break Vs US Dollar
- – Gold price is slowly moving higher and is currently trading above the $1,310 support against the US Dollar.
- – There is a crucial contracting triangle pattern forming with resistance at $1,318 on the hourly chart of gold versus the USD.
- – Recently in China, the Trade Balance report for April 2018 was released by the General Administration of Customs of the People’s Republic of China.
- – The outcome was above the forecast of $24.70B as there was a trade surplus of $28.8B.
China’s Trade Balance
Recently in China, the Trade Balance report for April 2018 was released by the General Administration of Customs of the People’s Republic of China. The market was looking for a trade balance of $24.70B, compared with the last deficit of $-4.98B.
The actual result was above the forecast of $24.70B as there was a trade surplus of $28.8B. Imports of goods and services in April 2018 increased 21.5%, more than the forecast of +16%. Exports of goods and services in April 2018 increased 12.9%, more than the forecast of +6.3%.
It seems like Gold price may extend gains and it could even break the $1,318 and $1,320 resistance levels for more gains.
Gold Price Technical Analysis
After trading towards the $1,300 support area, gold price started an upside move against the US Dollar. The price formed a low at $1,301 and started an upside move. It slowly moved higher and broke the $1,305 and $1,310 resistance levels.
The price also moved above the 50% Fib retracement level of the last decline from the $1,325 high to $1,301 low. Moreover, there was a close above the $1,310 resistance and 100 hourly simple moving average.
At the moment, it seems like there is a crucial contracting triangle pattern forming with resistance at $1,318 on the hourly chart of gold versus the USD. The price may soon make the next move either above $1,318 or below $1,310.
As long as the price is above the 100 hourly SMA, the chances of an upside break above $1,318 are high. The next resistance in the mentioned scenario is around the $1,325 level.
Also published on Medium.
