Yesterday the price of gold had no change as it remained at the opening level of the day. Some support the pair received from quite strong US statistics. The Consumer Confidence in December grew from 92.6 to 96.5 points, while economists forecasted a growth to 93.8 points. The S&P/Case-Shiller Home Price Indices for October increased by 5.5% that was also better than forecasts.
Trading activity remains very low.
Support and resistance
Bollinger Bands on the daily chart is moving horizontally while the price range remains unchanged. MACD is trying to turn down but for now is giving a buy signal. Stochastic is quickly falling and approaching the oversold zone.
The indicators recommend waiting for clearer trading signals.
Support levels: 1070.00 (local low), 1066.31 (28 December low), 1060.00, 1052.58, 1046.17 (3 December low), 1050.60, 1035.35.
Resistance levels: 1074.45 (local high), 1078.17, 1081.47 (21 December high), 1088.66 (4 December high), 1095.53, 1100.00.
Long positions can be opened after the breakout of the level of 1071.50 (with the appropriate indicators signals) with the target at 1076.75 and stop-loss at 1068.50. Validity – 1-3 days.
Short positions can be opened after the breakdown of the level of 1066.50 with the target at 1060.30 and stop-loss at 1070.00. Validity – 1-3 days.