After the long fall the gold price met the support at the zone of 1210.00-1220.00, after which it reversed to the upward correction. The upper border of the channel D1 (green), which has been supported the price for the 4 months, coincided with the 50% Fibonacci from the last half a year price growth. Despite the strong technical support, the fundamental factors are still pressing the gold: the growth of the US bills yield and the expectations of the USA FRS interest rate rise in the June meeting
Today the market participants are waiting for the USA publications: the Retail Sales and data (14:30 GMT+2). The Retail Sales index is expected to grow to 0.6% in April from 0.5% in the previous month.
Support and resistance
Support levels: 1210.00, 1190.00, 1170.00.
Resistance levels: 1230.00, 1250.00, 1265.00.
Open long positions at the current price with the target at 1230.0 0.1250.00 and stop loss at 1210.00.
Open short positions from 1210.00 with the target at 1190.00, 1170.00 and stop loss at 1230.00.
Implementation period: 1-3 days