Gold Price Remains Well Supported For More Gains05 September, 2019 by Aayush Jindal in Market Analysis
- Gold price seems to be facing resistance near $1,550 and $1,555 against the US Dollar.
- A crucial bullish trend line is forming with support at $1,530 on the 4-hours chart of XAU/USD.
- EUR/USD recovered above 1.1000 and GBP/USD surged more than 150 pips recently.
- The US ADP Employment could change 148K in August 2019, less than the last 156K.
Gold Price Technical Analysis
This past month, gold price surged to a new 6-year high at $1,555 against the US Dollar. Later, the price made a few attempts to surpass $1,550 and $1,555, but failed and started consolidating gains.
The 4-hours chart of XAU/USD indicates that the price is facing a strong resistance near the $1,550 and $1,555 levels. This past week, there was a downside correction below the $1,535 and $1,535 support levels.
The price even traded below the 50% Fib retracement level of the upward move from the $1,493 low to $1,555 high. However, the $1,520 support area prevented declines along with the 61.8% Fib level of the same upward move.
More importantly, there is a crucial bullish trend line forming with support at $1,530 on the 4-hours chart of XAU/USD. If the price breaks the trend line support, it could test the $1,520 support or the 100 simple moving average (4-hours, red).
Any further downsides may perhaps push the price towards the $1,500 support area. On the upside, the main resistances are near the $1,550 and $1,555 levels. A successful break above the $1,555 swing high will most likely set the pace for more upsides towards the $1,560 and $1,568 levels.
Overall, gold price remains supported on dips near $1,520 and $1,500 and it might bounce back in the near term.
Looking at EUR/USD, the pair started a strong rebound from well below 1.0950 and climbed above the 1.1000 level. Moreover, GBP/USD recovered sharply after it spiked below the 1.2000 support. A swing low was formed near 1.1958 before the pair surged above 1.2100 and 1.2150.
Economic Releases to Watch Today
- US ADP Employment Change August 2019 – Forecast 148K, versus 156K previous.
- US Initial Jobless Claims – Forecast 215K, versus 215K previous.
- US Services PMI for August 2019 – Forecast 50.9, versus 50.9 previous.
- US ISM Non-Manufacturing Index for August 2019 – Forecast 53.9, versus 53.7 previous.