Gold Price Could Struggle to Recover above $1,196 Vs US Dollar
- – Gold price faced selling pressure recently and declined below $1,200 against the US Dollar.
- – There are two bearish trend lines in place with resistance at $1,196 and $1,201 on the hourly chart of gold versus the USD.
- – Recently in China, the Caixin Services PMI report was released by Markit Economics.
- – The outcome was below the forecast of 52.7 as there was a decline in the PMI from 52.8 to 51.5.
Chinese Caixin Services PMI
Recently in China, the Caixin Services PMI report was released by Markit Economics. The market was looking for a decline in the PMI from the last reading of 52.8 to 52.7.
The actual result was below the forecast of 52.7 as there was a decline in the PMI from 52.8 to 51.5. Moreover, the Composite Output Index declined from the last reading of 52.3 to a five-month low of 52.0.
Gold price recently declined towards the $1,190 support area and it is currently attempting a recovery towards the $1,200 resistance.
Gold Price Technical Analysis
Gold price started a downside move from well above the $1,205 level against the US Dollar. The price declined below the $1,200 and $1,195 support levels plus it also settled below the 100 hourly simple moving average.
The price traded as low as $1,189 and it is currently correcting higher. At the outset, the price is testing the 23.6% Fib retracement level of the last decline from the $1,208 high to $1,189 low. However, there is a strong resistance formed near $1,196.
There are also two bearish trend lines in place with resistance at $1,196 and $1,201 on the hourly chart of gold versus the USD. The second trend line is near the 100 hourly SMA and the 50% Fib retracement level of the last decline from the $1,208 high to $1,189 low.
Therefore, if the price continues to move higher, it won’t be easy for buyers to clear the $1,196 and $1,200 resistance levels. On the other hand, if the price moves down, it could break the $1,189 swing low and trade towards the next support near the $1,184 level.
Also published on Medium.
