XAU/USD has been growing for 3 consecutive days due to the technical correction from the March low at 1162.57. The rate is additionally supported by the general weakening of the dollar that has started at the beginning of this week. At yesterday’s close, gold rose by yet another $9.
Out of today's fundamental factors that are able to affect the XAU/USD rate, pay attention to US retail sales (15:30 GMT+3). The figure is expected to grow.
Support and resistance
On H4 chart, MACD indicator points out to the growing purchasing activities. The MACD histogram is in the positive zone and its volumes are rapidly increasing. Bollinger bands are directed upwards signalling the continuation of the upward movement.
Resistance levels: 1192.25, 1197.00, 1204.18, 1209.00.
Support levels: 1185.35, 1180.20, 1175.00, 1169.20, 1162.34.
If the current trend continues, open long positions at the current price with the closest target near 1192.25. A firm breakout will open a way to the level of 1197.00. A downward movement may become possible once XAU/USD consolidates below the level of 1175.00. Sellers' target would be the local low 1162.57 from which a reversal may occur again.Publication source