XAU/USD: the price develops a corrective impulse
Current trend
Today, during the Asian session, gold prices grow moderately, developing the correctional impulse formed yesterday, and test the level of 1790.00 for a breakout, waiting for new drivers to appear.
More active positive dynamics are hindered by an increase in optimism in the market since the new strain of coronavirus will not be a significant obstacle to the further recovery of the global economy. Pressure on the instrument is also exerted by the rather strong positions of the American currency, as traders expect that the US Federal Reserve will accelerate the withdrawal of the quantitative easing (QE) program during the December meeting. Earlier, the head of the regulator, Jerome Powell, recognized the risks of systemic inflation and noted that additional efforts might be required to stabilize prices in the country.
The US labor market report for November released last Friday also signaled in favor of a faster monetary tightening. The unemployment rate fell sharply from 4.6% to 4.2%, well ahead of analysts' forecasts of a decline only to 4.5%.
Support and resistance
On the daily chart, Bollinger bands steadily decline. The price range narrows sharply, indicating an ambiguous nature of trading in the short term. The MACD indicator grows, maintaining a poor buy signal (the histogram is above the signal line). Stochastic shows more active growth but rapidly approaches its highs, indicating a limited potential for developing ultra-short-term corrective growth.
Resistance levels: 1790.00, 1800.00, 1812.22, 1822.10.
Support levels: 1778.32, 1769.67, 1760.74, 1750.44.
Today, during the Asian session, gold prices grow moderately, developing the correctional impulse formed yesterday, and test the level of 1790.00 for a breakout, waiting for new drivers to appear.
More active positive dynamics are hindered by an increase in optimism in the market since the new strain of coronavirus will not be a significant obstacle to the further recovery of the global economy. Pressure on the instrument is also exerted by the rather strong positions of the American currency, as traders expect that the US Federal Reserve will accelerate the withdrawal of the quantitative easing (QE) program during the December meeting. Earlier, the head of the regulator, Jerome Powell, recognized the risks of systemic inflation and noted that additional efforts might be required to stabilize prices in the country.
The US labor market report for November released last Friday also signaled in favor of a faster monetary tightening. The unemployment rate fell sharply from 4.6% to 4.2%, well ahead of analysts' forecasts of a decline only to 4.5%.
Support and resistance
On the daily chart, Bollinger bands steadily decline. The price range narrows sharply, indicating an ambiguous nature of trading in the short term. The MACD indicator grows, maintaining a poor buy signal (the histogram is above the signal line). Stochastic shows more active growth but rapidly approaches its highs, indicating a limited potential for developing ultra-short-term corrective growth.
Resistance levels: 1790.00, 1800.00, 1812.22, 1822.10.
Support levels: 1778.32, 1769.67, 1760.74, 1750.44.
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