Gold tests monthly pivot point

Source: Dukascopy Bank SA

The metal's squeeze between the hourly simple moving averages ended with a sharp drop to the lower trend line of a channel down pattern below the 1,750.00 mark.

The rate bounced off the trend line and began a surge, which was stopped by the resistance of a monthly pivot point at 1,773.62.

Economic Calendar Analysis



The main scheduled macroeconomic data release of the week is bound to occur on Thursday, at 12:30 GMT. At that time the US employment data sets are scheduled to be published.

Note that some calendars show the ADP Non-Farm Employment Change and the US ISM Manufacturing PMIs as high impact events, they have not caused an increase of volatility. See the tables below.

Take a look at all of the historical reaction tables by clicking on the link below.

XAU/USD short-term forecast

It is likely that yellow metal could gain support from the 55– and 100-hour moving average near 1,765.00. Thus, some upside potential could prevail in the market. In this case the rate could exceed the 1,780.00 level.

However, if the monthly R1 at 1,773.62 level holds, it is likely that gold could trade sideways against the US Dollar within the following trading session.

Hourly Chart



On the daily candle chart, the rate has passed the resistance, which kept it down in May.

Meanwhile, the commodity price is being followed by the support of the 55-day simple moving average, which on Friday was located above the 1,720.00 mark.

In addition, note that the resistance trend line of the 2019 and 2020 high levels could provide resistance above 1,780.00.

Daily Candle


Traders remain short

Since Thursday, on the Swiss Foreign Exchange the sentiment almost bearish, as it was 63% short.

Meanwhile, in 1000-pip range around the current metal's price the orders were set to buy, as 70% were bullish orders.

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