Gold Price Breaks Key Resistance, Dips Remain Supported05 June, 2019 by Aayush Jindal in Market Analysis
- Gold price started a fresh increase above $1,288 and $1,300 resistances against the US Dollar.
- There was a break above a key bearish trend line at $1,281 on the 4-hours chart of XAU/USD.
- The US Factory Orders in April 2019 declined 0.8%, less than the -0.9% forecast.
- The US ISM Non-Manufacturing Index in May 2019 is likely to remain stable at 55.5.
Gold Price Technical Analysis
The $1,275 level acted as a strong support and gold price bounced back against the US Dollar. The price broke the key $1,288 and $1,295 resistance levels to move into a positive zone.
The 4-hours chart of XAU/USD indicates that the price surpassed the $1,300 resistance area and the 100 simple moving average (4-hours, red). There was a close above the $1,310 level and the 200 simple moving average (4-hours, green).
The bulls gained traction, resulting in a solid upward move above the $1,320 level. The price traded close to the $1,300 level and it is currently consolidating gains.
On the upside, an immediate resistance is near the $1,330 and $1,335 levels. If there is an upside break above $1,335, the price could accelerate above the $1,340 level.
On the downside, an initial support is near the $1,316 level or the 23.6% Fib retracement level of the last wave from the $1,275 swing low to $1,329 swing high. If there is an extended downside correction, the price might find bids near the $1,300 support area.
Economic Releases to Watch Today
- Germany’s Services PMI for May 2019 – Forecast 55.0, versus 55.0 previous.
- Euro Zone Services PMI for May 2019 – Forecast 52.5, versus 52.5 previous.
- UK Services PMI for May 2019 – Forecast 50.6, versus 50.4 previous.
- US Services PMI for May 2019 – Forecast 50.9, versus 50.9 previous.
- US ISM Non-Manufacturing Index for May 2019 – Forecast 55.5, versus 55.5 previous.