Gold Prices Trade Below Resistance Ahead of News
- Gold Remain Under Resistance Ahead of Key Data
- Prices Have Failed at $1,260.00 on 4 Previous Price Tests
- Looking for additional trade ideas for gold and other commodities markets? Read Our Market Forecast
Gold prices have found resistance this morning under 1,260.00, ahead of ISM Services data and the release of the FED meeting minutes from March later in the session. Expectations for USD ISM Services data is set at a forecasted 57. Both events are marked as high importance releases on the economic calendar, and have the ability to create volatility for US Dollar prices assets such as gold.
Technically gold prices remain in an uptrend, with the commodity trading above both its 10 day EMA (exponential moving average) and 200 day MVA (simple moving average). However prices have stalled again beneath a key point of resistance at $1,260.00. So far gold prices have attempted and failed to breakout above this value on four occasions. If prices do breakout higher, it may be interpreted as a strong continuation signal for the commodity. Alternatively if resistance holds, traders may look for gold to trade lower back through the previously mentioned moving averages.
Gold Price, Daily Chart with Averages
Intraday market analysis has the price of gold trading down below its central pivot, which is found at $1,257.07. This downward momentum now has the commodity testing its first intraday value of support. Today’s R1 pivot is found at $1,252.76, and a breakout below this value would next expose the S2 pivot at $1,249.80.
In the event that gold prices remains supported near present levels, a bullish reversal should first see the commodity trade back above its central pivot. A move of this nature would then expose key values of intraday resistance. Today’s R1 pivot is found at $1,260.01. This point lines up with the previously mentioned value of daily resistance. A breakout here should be seen as significant, and exposes gold to new potential highs. Traders should then note that the R2 and R3 pivots may be found at $1,264.30 and $1267.26 respectfully.
Gold Price,30 Minute Chart & Pivots
--- Written by Walker, Analyst for DailyFX.com
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.