CFD Update: Has Gold found resistance?
Hi traders, to end the week we’re looking at Gold, as price looks to have found resistance after what has been a positive week so far.
Looking at the current situation, we can see that the main trend is an uptrend. Вe can see the last move higher started from a resistance area that became support. These are positive signs in an uptrend. This week’s buying has been led by a collapsing USD. The USD has had a fall from grace, the index dropping around 1.16% to its low this week.
Looking at the current price chart we’re quite interested in $1829.30 this level formed as resistance in early Jan and so far has repelled buyers. Today we saw the latest test which was knocked back. While this level remains in play we will continue to look for sellers to hold short term momentum. If we do see a strong move lower develop we will be looking for the $1789 area to come in as support.
If the move lower is short-lived and the USD resumes its decline would be looking for buyers to take a new shot at $1829.30 resistance.