Gold price technical analysis 4 – April, 2013 — the pair of gold / U.S. dollar continue to decline yesterday and reached its lowest level since July 2012.
Although the data from the United States were disappointing, the technical selling pressure has had a stronger impact on gold prices. “The ADP Research Institute” that companies added 158,000 employees during the month of March after offering by 237,000 over the past month, data released by the “Institute of Supply Management” revealed that the non-industrial sector index fell to 54.4.
During the Asian trading session, the pair is trading at $ 1549.68 USD/Ounce before recovering slightly to $ 1556 USD/Ounce. I said yesterday that the level of support at $ 1564 USD/Ounce was a crucial level will accelerate the move to the downside. Since we’ve hacked this important level, I expect to see prices may test the lowest level on June 28 at $ 1547.92 USD/Ounce.
If the upward movement was able to push prices below this level, it is possible to see the continuity of regressive to the next support level at $ 1532 and 1530 USD/Ounce. The region is also the bottom of a large support area where prices are moving nearly 80 weeks ago. For this reason, I strongly believe that the fate of gold will depend on the area of historical support. Weekly close below this level will indicate that there is a big sale on the road.
In that case, you will watch the level of $ 1478 and 1444 USD/Ounce of gold in the long term. For purchase, can I not think of reason leads me to do so now. However, I will monitor the $1530 USD/Ounce close. If the upward movement to defend the level of $ 1547.92 USD/Ounce and reflected pair moved, it will be the level of $ 1564 USD/Ounce resistance level on strong. After that level, there will be more resistance at $ 1572 and 1585 USD/Ounce of gold.
The main focus today will be on central bank meetings and PMI data for European services. European Central Bank and the Bank of Japan and Bank of England will do the recent release of their decisions on the policy later in the day.