On Tuesday, gold significantly fell after the publication of strong data from the US on Housing Starts, which in July grew to 1.206 million (forecasted 1.190 million new starts). However, the fall did not last and towards the end of the session, the price grew again.
Today trading activity is falling as key publications on the Consumer Price Indices and FOMC Minutes are coming out in the US.
Support and resistance
Bollinger Bands on the daily chart is growing and the price range remains wide. MACD is growing as well and giving noticeably weakening buy signal. Stochastic is falling and moving away from the overbought zone.
The indicators do not give a clear trading signal.
Support levels: 1110.00 (14 August lows), 1105.50, 1101.60, 1094.50, 1080.70, 107.20 (24 July low).
Resistance levels: 1119.00 (local high), 1126.50 (13 August high), 1134.30, 1146.80, 1156.40 (middle of July level).
Open long positions after the breakout and consolidation above the level of 1119.00 (with the appropriate indicators signals) with targets at 1126.50, 1130.00 and stop-loss at 1110.00.
Short positions can be opened after the breakdown of the level of 1110.10 with the target at 1100.00 and stop-loss at 1126.50.Publication source