There was an upside move in Gold price recently against the US Dollar towards $1185. The price broke a major resistance at $1160, which may now act as a support.
Gold Price Weekly Analysis – Support Formed Near $1160
· There was a nice upside move in Gold price, as the bulls managed to push it above $1180.
· There is a bullish trend line formed on the 4-hours chart of XAUUSD, which may act as a support near $1160-65.
· The US NFP report will be released by the US Department of Labor today, which may impact Gold price.
Gold Price Technical Analysis
The US Dollar was under a minor bearish pressure after the FOMC meeting minutes, which helped Gold price for a push towards $1180. The price traded as high as $1184 where it found resistance, and currently looks set for a downside move in the short term.
During the recent upside, the price broke a major resistance near $1160. The same level may now act as a support at $1160-65, as there is a bullish trend line formed on the 4-hours chart of XAUUSD.
Moreover, the 38.2% Fib retracement level of the last leg from the $1122 low to $1184 high may also act as a support near the same area. So, there is a major support base formed where we can consider buying.
Trade Idea – If you are looking to enter a buy trade, then consider it near the $1160-65 levels with a stop of a close below the trend line support.
Today in the US NFP report will be released by the US Department of Labor today, which may impact Gold price to a great extent. Recently, the US Services Purchasing Managers Index (PMI) was released by Markit Economics.
The result was positive, as there was a rise from the last reading of 53.4 to 53.9 in Dec 2016. The report that the “Greater workloads and improved confidence towards the business outlook in turn contributed to the fastest rise in payroll numbers since September 2015“.
Overall, there is a chance that Gold price may correct lower, but it remains supported on the downside near $1165-60.