Gold Price Approaching Next Break Vs US Dollar
- – Gold price is trading nicely above the $1,300 support level with a positive angle against the US Dollar.
- – There is a contracting triangle forming with support at $1,300 on the hourly chart of gold versus the USD.
- – Recently in China, the Manufacturing Purchasing Managers Index (PMI) for May 2018 was released by the China Federation of Logistics and Purchasing (CFLP).
- – The outcome was above the forecast of 51.3 as there was a rise in the PMI to 51.9.
China’s Manufacturing Purchasing Managers Index
Recently in China, the Manufacturing Purchasing Managers Index (PMI) for May 2018 was released by the China Federation of Logistics and Purchasing (CFLP). The market was looking for a decline in the PMI from the last reading of 51.4 to 51.3.
The actual result was above the forecast of 51.3 as there was a rise in the PMI to 51.9. Looking at the official non-manufacturing PMI, the market was looking for no change from the last reading of 54.8. However, the result was positive as there was a rise in the PMI to 54.9.
Gold price is currently trading with a positive bias and it seems like it could break the $1,305 resistance for further gains.
Gold Price Technical Analysis
After trading towards the $1,292 level, gold price found support against the US Dollar. The price started an upside move and traded above the $1,300 resistance level. There was also a close above $1,300 and the 100 hourly simple moving average.
The price recently traded towards the $1,305 level where it faced sellers. A high was formed at $1,304 and the price corrected below the 23.6% Fib retracement level of the last wave from the $1,295 low to $1,304 high.
However, the downside move was protected by the $1,300 support and the 100 hourly SMA. Moreover, the 38.2% Fib retracement level of the last wave from the $1,295 low to $1,304 high also acted as a support.
It seems like there is a contracting triangle forming with support at $1,300 on the hourly chart of gold versus the USD. The price may soon make the next move either above $1,305 or below $1,300 in the near term.
Also published on Medium.
