Served by Market President FP Aaron Hill
Safe armed assets have received a strong offer in the last trading, and directing immediate gold to the highest level of 3,220 USD/Troy Oid against the US dollar (Xau/USD). This shift towards safe deception markets was driven by the most softening demand for the US dollar, as the markets fled from dollar assets, in addition to the escalation of trade tensions between the United States and China. It is not surprising, the Swiss franc (CHF) and Japanese yen (JPY) also attracted big offers, as the USD/ChF pair recorded about 4.0 %-the largest decrease for one day since 2015!
Monthly resistance and monthly sales conditions
According to what was reported, many offices are looking for 3500 US dollars as the next pastoral goal for gold; However, the monthly graph reveals that it has been greatly purchased according to the RSI Index. You will notice that RSI has been inside the peak area of the purchase since mid -2014 and touched the gloves recently with a familiar resistance between 87.31 and 82.20. This region has historical importance since 2006, and every time the index approaches the resistance, it usually follows a temporary correction/stop in the yellow metal. Thus, it raises the question about whether the purchase is set to moderate/stopping in the monthly resistance area between 3,264 USD and 3,187 USD (consisting of 1.618 % and 1.272 % of Fibonacci projection rates, respectively)?
Daily demand area; to retreat?
Meanwhile, on the daily chart, the procedures in Price came in throwing stone to test support from 2942 USD at the beginning of the week before gathering to the highest levels mentioned above. What is interesting from a technical perspective is that the step left behind in the demand area of $ 3,000-3,058 dollars, which, in my opinion, represents a major technical area.
With gold firmly firmly in a strong upward direction, buyers from the daily demand area can appear in the event of a correction. However, given the technical indicators on the monthly graph that indicates that buyers can pump brakes, it is possible that any activity is being dealt with to purchase a retreat with caution. COnfirmation – Such as the signal of the upscale candles or the price support on the low time frames – it may be needed before the trigger is withdrawn. However, any movement lower than the aforementioned demand zone signals involve a force from the monthly resistance area, and may open the door to short -term sales opportunities, targets daily support at a price of $ 2942, and is closely followed by support in the amount of $ 2,865, and perhaps $ 2,790.
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