- The upside pressure is high after failing to retest the median line (ml).
- The upper median line (uml) represents a dynamic resistance.
- The US retail sales and the Canadian CPI should move the price today.
The gold price rallied after marking lows below $1,950 yesterday. The metal is trading at $1,961 at the time of writing. The bias is bullish as the US dollar remains offset.
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Despite temporary retreats, the XAU/USD seems determined to approach new highs if the DXY extends its sell-off.
The yellow metal jumped higher even though the Empire State Manufacturing PMI came in better than expected at 1.1 versus -3.5 forecasts.
Still, the indicator came in worse compared to the 6.6 points in the previous reporting period. Today, the RBA Monetary Policy Meeting Minutes represented a high-impact event.
The Reserve Bank of Australia is expected to deliver new hikes in the upcoming monetary policy meetings.
Later, the Canadian and US data dump should shake the markets. The Canadian CPI may report a 0.3% growth versus 0.4% growth in the previous reporting period.
Furthermore, US Retail Sales data is expected to report a 0.5% growth, while Core Retail Sales could report a 0.4% growth.
The XAU/USD should most likely register sharp movements around these economic data. The Industrial Production, Capacity Utilization Rate, and Business Inventories data will be released as well. Tomorrow, the UK and New Zealand inflation figures should move the rate.
Gold Price Technical Analysis: Strong Upside Pressure
Technically, the price failed to reach the weekly pivot point (1,943) and the median line (ml), signaling exhausted sellers and strong upside pressure. Now, it challenges a strong supply zone.
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The ascending pitchfork’s upper median line (uml) is seen as a major dynamic resistance. A larger upwards movement could be activated after removing the upper median line (uml). Only a bearish pattern inside of this supply zone may announce a new sell-off.
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