Current trend
The US Dollar is strengthening again against “commodity” currencies, oil and precious metals.
Yesterday, the US released GDP and GDP Price Index data which proved the stability of the economic situation in the country.
Today, it is worth noting the publication of Personal Income and Personal spending statistics for July and Consumer Sentiment Index for August.
If the Federal Reserve raises the US interest rate, the American currency will become more attractive for investors and the price of precious metals will decline in response. At the same time, if the regulator refuses to tighten its monetary policy amid the global stock market crisis, the price of gold may return to growth.
Support and resistance
On the daily chart, OsMA and Stochastic give sell signals; on the 4-hour chart, they indicate long positions.
On the 4-hour chart, the pair is trading near the support levels of 1127.00 (ЕМА200), 1125.00 (ЕМА144), the breakdown of which would accelerate the decline towards year lows at 1085.00.
While the price remains below the resistance level of 1168.00, middle-term short positions are valid. The breakout of this level would push the price towards 1183.00 (ЕМА200), 1193.00 (50% Fibonacci) and, possibly, higher.
Support levels: 1125.00, 1118.00, 1115.00.
Resistance levels: 1134.00, 1136.00, 1145.00, 1168.00.
Trading tips
Open short positions from the current level and pending sell orders from 1123.00 with targets at 1118.00, 1115.00, 1085.00 and stop-loss at 1134.50.
Open
long positions and pending buy orders from the level of 1138.00 with targets at
1145.00, 1160.00, 1164.00 and stop-loss at 1134.50.
