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  • The bias is bullish if it stays above the median line (ml).
  • Only a new lower low can invalidates the bullish scenario.
  • The US JOLTS Job Openings should move the rate later today.

The gold price retreated slightly within a broad bullish bias. Greenback’s weakness helped the yellow metal to approach new highs.

The metal is trading at $1,983 at the time of writing and is fighting hard to resume its rise. The XAU/USD is bullish as the US reported poor economic data yesterday.

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The ISM Manufacturing PMI came in at 46.3 points versus 47.5 points expected and below 47.7 points in the previous reporting period.

In addition, ISM Manufacturing Prices dropped from 51.3 points to 49.2 points below 51.2 expected signaling contraction, Final Manufacturing PMI was reported lower at 49.2 points versus 49.3 estimates. In contrast, Construction Spending dropped by 0.1% even if the specialist expected a 0.0% growth.

Today, the Reserve Bank of Australia left its Cash Rate unchanged at 3.60%, as expected. Later, the JOLTS Job Openings represent a high-impact event. The economic indicator is expected at 10.49M, below 10.82M in the previous reporting period. Furthermore, Factory Orders could report a 0.4% drop.

Tomorrow, the RBNZ and the US ADP Non-Farm Employment Change and ISM Services PMI should greatly impact gold.

Gold Price Technical Analysis: Buyers dominating

gold price

Technically, the gold found resistance at the weekly R1 (1,989), which has turned to the downside. It has tested the ascending pitchfork’s median line (ml), registering only false breakdowns. The bias remains bullish as long as it stays above the median line (ml). In the short term, gold is trapped between $1,985 and $1,977.

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Its false breakdown with great separation through 1,977 confirmed strong upside pressure and a potential leg higher. Still, only a new higher high may announce further growth. Technically, the upside scenario could be invalidated only by a new lower low.

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