Gold Price Is At Risk of More Losses Below $1,190 Vs US Dollar

Gold Price Is At Risk of More Losses Below $1,190 Vs US Dollar

  • – Gold price started a downside move from well above the $1,200 pivot level against the US Dollar.
  • – There is a short-term breakout pattern in place with resistance at $1,195 on the hourly chart of gold versus the USD.
  • – Recently in the US, the Consumer Credit Change figure for July 2018 was released by the Board of Governors of the Federal Reserve.
  • – The outcome was above the forecast of $13.00B as the Consumer Credit Change came in at $16.64B.

US Consumer Credit Change

Recently in the US, the Consumer Credit Change figure for July 2018 was released by the Board of Governors of the Federal Reserve. The market was looking for a change of around $13.00B compared with the last reading of $10.21B.

 

The actual result was above the forecast of $13.00B as the Consumer Credit Change came in at $16.64B. However, the last reading was revised down from $10.21B to $8.46B.

 

Gold price recently moved below the $1,200 support level and it seems like it remains at a risk of more declines below the $1,190 level.

 

Gold Price Technical Analysis

Gold price recently faced a strong selling interest near the $1,205-1,206 resistance zone against the US Dollar. The price started a downside move, broke the $1,200 pivot level, and also settled below the 100 hourly simple moving average.

 

Gold Price Technical Analysis

 

The price traded as low as $1,191 and later started an upward correction. It moved above the 23.6% Fib retracement level of the last slide from the $1,206 high to $1,191 low. However, the upside move was capped by the $1,198 level and the 100 hourly SMA.

 

Moreover, the 50% Fib retracement level of the last slide from the $1,206 high to $1,191 low also acted as a resistance. At the outset, there is a short-term breakout pattern in place with resistance at $1,195 on the hourly chart of gold versus the USD.

 

Therefore, the price is likely to make the next move either above $1,195 or below $1,191. On the upside, above $1,195, the price could move back above $1,200. On the other hand, a break below $1,191 may push the price towards the $1,180 support area.


Also published on Medium.

Tags: , , ,

Like what you've read?

Join thousands of other traders who receive our newsletter containing; market updates, tutorials, learning articles, strategies and more.

Previous Entry   Next Entry