Gold Poised for Bullish Reversal As US Retail Sales Data Looms

FXOpen

The price of Gold fell on Monday, dragging the yellow metal to less than $1165 an ounce ahead of some key economic events that are due later this week. The technical bias has already turned bearish due to a Lower Low and Lower High in the recent wave.

Technical Analysis

As of this writing, the pair is being traded around $1161. A support may be noted near $1160, the 23.6% fib level ahead of $1147-50 support which is the confluence of psychological number as well as the swing low of last major dip as demonstrated in the following daily chart.

Gold Poised for Bullish Reversal As US Retail Sales Data Looms

On the upside, the pair is expected to face a hurdle near $1169, the 38.2% fib level ahead of $1176, the 50% fib level and then $1206, the high of the last major upside rally. The technical bias will remain bearish as long as the $1206 resistance area is intact.

US Retail Sales

The US Commerce Department is going to release the retail sales figure tomorrow during the early New York session. According to the average forecast of different economists, the retail sales remained 0.3% in June as compared to 1.2% in the month before. Generally speaking, higher retail sales figure is considered bullish for the US Dollar (USD) and vice versa thus a worse than expected actual outcome will be seen as bullish for the price of gold.

Trade Idea

Considering the overall technical and fundamental outlook, buying the precious metal around current levels appears to be a good strategy in short to medium term if we get a valid bullish pin bar or bullish engulfing candle.

Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips. Open your FXOpen account now or learn more about trading forex with FXOpen.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Latest from Forex Analysis

Volatility in the Pound Is Rising, the Euro is Consolidating Commodity Currencies at Strategic Levels. What Can Affect a Breakdown Downwards? Market Analysis: AUD/USD and NZD/USD Turn Red The Dollar is Corrected after the Comments of the Head of the Federal Reserve USD/JPY Analysis: Prospect of a Breakout of the Level of 155 Yen per Dollar

Latest articles

Indices

Germany's DAX 40 Index Flying High Despite Pessimistic National Outlook

For a number of years now, there has been a lot of discourse over the current situation and the future of the German domestic economy.

From both inside Germany and globally, analysts, government officials, and corporate leaders have demonstrated a

Forex Analysis

Volatility in the Pound Is Rising, the Euro is Consolidating

GBP/USD

At the end of last week, the British currency fell sharply, testing a significant support level at 1.2300. The resumption of the downward trend for the pair became possible after some statements by British officials:

  • On Wednesday,
Commodities

The Price of Gold XAU/USD Shows Strongest Fall in Almost 2 Years

On Monday, the price of gold fell from USD 2,386 to USD 2,333 per ounce — this is the strongest drop in one day in almost 2 years, according to Bloomberg. On Tuesday morning in the Asian session, the

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.