- The bias is still bearish despite temporary rebounds.
- 38.2% is seen as the first upside target.
- The lower median line (LML) is a magnet and attracts the price.
The gold price continued to slide yesterday, reaching as low as $1,915, where it found some support. At the time of writing, the metal had recovered slightly to $1,920.
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However, the bearish pressure is still intense, and the pair could face more losses if the US dollar keeps rising. The Dollar Index shows a bullish trend, which is harmful for gold.
The US dollar was boosted by the better-than-expected data from the US yesterday. The ISM Services PMI, the IBD/TIPP Economic Optimism, and the Trade Balance all beat the forecasts, indicating a robust recovery of the US economy.
Today, there will be more data to watch out for from both the US and Canada. The US Unemployment Claims were expected to increase slightly to 232K. However, the unemployment claims dropped to 216k, lending more power to the Greenback.
The speeches from the FOMC members could also affect market sentiment. Moreover, the Canadian data could influence the pair as well. The BOC Governor Macklem will speak at an event, and the Canadian Ivey PMI and Building Permits will be released.
Tomorrow, more economic events from Japan, Canada, and the US could move the pair. China will publish its CPI and PPI data on Saturday, which could impact gold prices on Monday.
Gold price technical analysis: $1,915 support halting bears
Gold prices fell after failing to break above the 61.8% retracement level on the hourly chart. They also failed to reach the median line (ML) of the ascending pitchfork, which suggested a possible downtrend towards the lower median line (LML).
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This is a dynamic support that could attract the price. However, gold prices are trying to bounce back after finding some support at the weekly S1 of 1,917.
The first resistance level is the 38.2% retracement level at 1,924. This rebound could be short-lived and could offer a new opportunity to sell. A new lower low could confirm the downtrend towards the LML.
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