Gold price recovered sharply and moved back above the $1,200 support against the US Dollar.
There was a break above a bearish trend line with resistance at $1,197 on the 4-hours chart of XAU/USD.
The UK Construction PMI in Sep 2018 declined from 52.9 to 52.1.
The US ADP Employment figure for Sep 2018 will be released today, which is likely to increase 185K.
Gold Price Technical Analysis
After trading in a broad range above the $1,200 level, gold price started a downside move against the US Dollar. The price tested the $1,180 support and later bounced back above the $1,200 support level.The 4-hour chart of XAU/USD indicates that the price was under pressure recently and it moved below the $1,185 support. It traded as low as $1,180 and settled below the 100 simple moving average (red, 4-hours).Later, there was a sharp upward move and the price traded above the $1,200 level and the 50% Fib retracement level of the last decline from the $1,211 high to $1,180 low.The price even settled above the 100 SMA, 200 SMA (green) and the 61.8% Fib retracement level of the last decline from the $1,211 high to $1,180 low. It seems like the price is back in a positive zone and it could continue to move higher.On the upside, there is a strong barrier around the $1,210-1,211 zone, which acted as a resistance on multiple occasions. Buyers need to push the price above $1,211 to accelerate gains towards the $1,220 level.If they fail, there could be a downside correction towards the $1,204 and $1,200 support levels. The most important support is near $1,197 and the 100 SMA.Looking at major pairs like EUR/USD and GBP/USD, there were mostly bearish moves. The Euro declined below the 1.1550 support and the British Pound broke the 1.3025 support area against the US Dollar.
Economic Releases to Watch Today
Germany’s Services PMI for Sep 2018 - Forecast 56.5, versus 56.5 previous.
Spanish Services PMI for Sep 2018 – Forecast 52.9, versus 52.7 previous.
Euro Zone Services PMI for Sep 2018 – Forecast 54.7, versus 54.7 previous.
UK Services PMI for Sep 2018 – Forecast 53.9, versus 54.3 previous.
US Services PMI for Sep 2018 – Forecast 53.6, versus 52.6 previous.
US ADP Employment Change Sep 2018 - Forecast 185K, versus 163K previous.
US ISM Non-Manufacturing Index for Sep 2018 – Forecast 58.0, versus 58.5 previous.
The 4-hour chart of XAU/USD indicates that the price was under pressure recently and it moved below the $1,185 support. It traded as low as $1,180 and settled below the 100 simple moving average (red, 4-hours).Later, there was a sharp upward move and the price traded above the $1,200 level and the 50% Fib retracement level of the last decline from the $1,211 high to $1,180 low.The price even settled above the 100 SMA, 200 SMA (green) and the 61.8% Fib retracement level of the last decline from the $1,211 high to $1,180 low. It seems like the price is back in a positive zone and it could continue to move higher.On the upside, there is a strong barrier around the $1,210-1,211 zone, which acted as a resistance on multiple occasions. Buyers need to push the price above $1,211 to accelerate gains towards the $1,220 level.If they fail, there could be a downside correction towards the $1,204 and $1,200 support levels. The most important support is near $1,197 and the 100 SMA.Looking at major pairs like EUR/USD and GBP/USD, there were mostly bearish moves. The Euro declined below the 1.1550 support and the British Pound broke the 1.3025 support area against the US Dollar.