Gold Price Back in Uptrend Vs US Dollar

Gold Price Back in Uptrend Vs US Dollar

  • – Gold price found support near $1,302 after a major decline against the US Dollar.
  • – There was a break above a major bearish trend line with resistance at $1,315 on the hourly chart of gold versus the USD.
  • – Recently in China, the Caixin Services PMI for Feb 2018 was released.
  • – The outcome was below the forecast of 54.5 as there was a decline in the PMI from 54.7 to 54.2.

 

China’s Caixin Services PMI

Recently in China, the Caixin Services PMI for Feb 2018 was released. The market was slated for a minor decline in the PMI from the last reading of 54.7 to 54.5 in Feb 2018.

 

The actual result was below the forecast of 54.5 as there was a decline in the PMI from 54.7 to 54.2. Moreover, the Composite Output Index also declined slightly from a seven-year record of 53.7 to 53.3 in Feb 2018.

 

However, there was no negative impact on gold and the price may continue to rise in the near term as long as above $1,320.

 

Gold Price Technical Analysis

After a major decline from the $1,340 swing high, gold price found support just above the $1,300 level against the US Dollar. A low was formed at $1,302, and later the price started an upside move and traded above the $1,310 level and the 100 hourly simple moving average.

 

Gold Price Technical Analysis

 

The price also broke the 23.6% Fib retracement level of the last decline from the $1,340 high to $1,302 low. Moreover, there was a break above a major bearish trend line with resistance at $1,315 on the hourly chart of gold versus the USD.

 

The price is now trading well above the $1,320 level and the 50% Fib retracement level of the last decline from the $1,340 high to $1,302 low. Therefore, the price is likely to extend gains above the $1,325 and $1,330 levels in the near term.

 

If there is a downside correction, the broken resistance at $1,320 is likely to act as a support. Moreover, the 10- hourly SMA is positioned near $1,320 to act as a solid support for the bulls.


Also published on Medium.

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