Thursday, July 26, 2018

XAU/USD- 26 July 2018


Fundamental Highlights

The US Dollar took a rest after yesterday's easing in trade war tensions between the US and Europe, which has led to a surge in Gold prices. After a positive meeting between Trump and Junker, we witnessed a move above the $1230 level to test the $1235 area as expected. However, today's US core durable goods orders might send the greenback on a bullish mode again, hence, a correction for Gold prices could be next while waiting for further developments in the US-China trade spat.

Technical Analysis

As expected, the price broke the upper trend line as discussed yesterday, leading to a move to the upside breaking the 1228.5 resistance level which now became support. However, a decline in the momentum has forced the price to hold above the $1230 level. But, if momentum picks up, the price will surge to test the $1238 resistance level which we will be focusing on.

Support: 1222.20 1217
Resistance: 1228.5 1235

Chart (1H)

XAU/USD Chart 26 July 2018