- Gold price made a nice upside move and traded above the $1,330 and $1,340 resistances against the US Dollar.
- There was a break above a crucial contracting triangle with resistance at $1,318 on the 4-hours chart of XAU/USD.
- The Chicago Fed National Activity Index (CFNAI) posted a rise from 0.02 (revised) to 0.88 in Feb 2018.
- Today, the S&P/Case-Shiller Home Price Indices report (Jan 2018) will be released, which is expected to register a rise of 6.2% (YoY).
Gold Price Technical Analysis
There was a solid support formed near $1,306 in gold price against the US Dollar. The price traded higher and broke the $1,330 and $1,340 resistance levels.
During the upside move, the price cleared the 50% Fib retracement level of the last downside move from the $1,340.47 high to $1,306.90 low. More importantly, there was a break above a crucial contracting triangle with resistance at $1,318 on the 4-hours chart of XAU/USD.
The upside move was strong and the price succeeded in settling above the $1,330 level, 200 simple moving average (green, 4-hour) and the 100 simple moving average (red, 4-hour).
Lastly, there was a break above the last swing high of $1,340. These all are positive signs. If buyers remain in control, the price could test the 1.618 Fib extension level of the last downside move from the $1,340.47 high to $1,306.90 low.
On the downside, the broken resistance at $1,340 is likely to act as a support. The most important support is close to the $1,328 level and the 200 simple moving average (green, 4-hour).
Overall, the market sentiment is positive and the price is likely to remain in a bullish zone above the $1,340 support level.
Economic Releases to Watch Today
- Euro Zone Business Climate Index for March 2018 – Forecast 1.40, versus 1.48 previous.
- Euro Zone Economic Sentiment Indicator for March 2018 – Forecast 113.4, versus 114.1 previous.
- S&P/Case-Shiller Home Price Indices for Jan 2018 (YoY) – Forecast +6.2%, versus +6.3% previous.