XAUUSD is within the descending price channel. The trend break occurred at the end of June. Within the current channel, the price makes a false breakdown of 1902 and forms a rebound to resistance, which many perceived as a trend change, but it is not so
There are not many key news releases this week, but all of them are published on Wednesday, they are worth paying attention to, for the data indicator will provide us with a medium-term insight for pricing:
- 1) SP Global US Services PMI
- 2) ISM Non-Manufacturing PMI
- 3) ISM Non-Manufatiruong Prices
Monday is a day off in the US, hence we do not expect high volatility.
From the technical analysis point of view:
The price is in a descending price channel. The nearest resistance that may play an important role for the price is at 1920, 1935, on Monday and Tuesday the price is likely to reach this area before falling further. Why am I expecting a fall? Pay attention to the DXY chart. The dollar index has consolidated above the strong 103 level, forming an impulse and testing a false break of 104.3. In the medium term, the DXY could continue to rise towards 105.65, which would give a bearish push for gold
Support levels: 1902.9, 1884
Resistance levels: 1920, 1935.5
The direction of the dollar will give us the primary movement of the gold price in the first half of the weekly session, the news on Wednesday will determine the further movement.
Regards R. Linda!