|Key Levels||33152, 33875, 34444|
Gold prices moved lower in late trading after hitting a fresh high for 2019. Prices were higher ahead of Fed minutes but the dovish commentary triggered a round of profit-taking. The Fed minutes were bearish for the dollar and bullish for riskier assets. which should pave the way for higher gold prices. Japan reported weaker than expected export data. which should keep the Bank of Japan in an accommodative mode, helping gold prices gain traction.
Current Trend (Up Trend)
According to EMA cross in daily, gold major trend still running uptrend. The 50 EMA is running above 150 EMA. In the previous market behavior the price is bouncing from EMA 20 (Yellow line). and becoming a strong support and creating higher high and lower low. Feb 04, 2019 gold price reached level of 34400 which is high price this year. After reaching the higher price now gold price is trying to retrace toward EMA 20, the price of 33152.
After bottoming point A on Jul 19th 2015. at 24470 gold price took a long rally till 32357 point B on Jun 19th 2016. and again retrace to 26980 point C on Dec 18th 2016 create a lower high. which is 61% retracement of Fibonacci wave. On Feb 3rd gold price create a new high record at the price of 34400 point D. which is 123.6% Fibonacci extension.
Support and resistance
Above the image we see, the price is bouncing from EMA 20 and becoming a strong support.
Resistance levels: 33875, 34444
Support levels: 33152, 32678
Long positions can be opened after the reaching of the level of 33152. with the target at 33875 and stop loss 32678.