Technical details:
Senior linear regression channel: direction - up.
The younger linear regression channel: direction - up.
Moving average (20; smoothed) - up.
CCI: -88.5593
Gold continues its upward movement, despite the strengthening of the US dollar, if for example, when paired with Eurocurrency. The conclusion is that gold is now in demand, and the US dollar is not getting any cheaper, which is reflected in the growth of "gold" quotes. At the moment, the tool has been adjusted to the moving average line and may even be fixed below it. However, the last three fixings below the moving within the current uptrend turned out to be false. Therefore, it might happen this time. Thus, we recommend returning to a rising trade if the instrument returns to an area above the moving average. The evening meeting of the British Parliament, by the way, may also affect the quotes of the main precious metal. If it turns out that the parliament supports the "tough" Brexit or any other "bad" option, this may cause a demand for safe-haven assets, as the pound sterling falls under the pressure of market participants. However, it should also be kept in mind that gold is influenced by a large number of factors, and not all of them are obvious, as is the case with many currency pairs. Therefore, the formation of a downtrend should also be prepared.
Nearest support levels:
S1 - 1312.50
S2 - 1304.69
S3 - 1296.88
Nearest resistance levels:
R1 - 1320.31
R2 - 1328.13
Trading recommendations:
Gold is currently being adjusted. Thus, it is recommended to wait for the completion of the correction and resume trading for a raise with targets at 1320.31 and 1328.13, if the price remains above the moving average. Sell orders will become actual small lots. However, before that, travers must overcome the moving average with the target at 1304.69.
In addition to the technical picture, the fundamental data and the time of their release should also be taken into account.
Explanations for illustrations:
The senior linear regression channel refers to the blue lines of unidirectional movement.
The younger linear regression channel refers to the purple lines of unidirectional movement.
CCI - blue line in the indicator window.
The moving average (20; smoothed)pertains to the blue line on the price chart.
Murray levels - multi-colored horizontal stripes.
Heiken Ashi is an indicator in blue or purple colored bars.
The material has been provided by InstaForex Company - www.instaforex.com