July 24, 2019 | SQUARED DIRECT – Gold price weakened on Tuesday, pressured by a strong U.S. Dollar that hit its highest level since May 31, with most major currencies like the Euro and British Pound dropping as well against the greenback.
News that the Trump administration and lawmakers had reached a two-year deal that raises limits on government borrowing to cover spending helped support the dollar. Looking ahead, investors prepare for fresh stimulus from the European Central Bank on July 25. Traders expect the ECB to issue dovish forward guidance and possibly better terms for loans mainly for SME’s.
Gold price technical forecast
The long-term bullish trend is still intact on the daily chart, however, on smaller timeframes momentum shifted to the downside on Friday with the formation of a reversal signal at $1452.
The $1427 price failed to support the precious metal yesterday, however, we are still trading above the 200-period moving average and important support level at $1418 and as long as we don’t breach this support, a move over $1430 is expected. This could trigger a quick move into a minor pivot at $1444, followed by the main top at $1452.
Support: 1418 / 1401
Resistance: 1444 / 1452
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