Gold Looks Set For A Major Pullback As Bulls Gain Momentum
Jul, 27th 10:27
Gold finally halted the record-breaking losing streak on Friday before extending upside movement today during the Asian session. The same bullish momentum is being noted in the London session with price of yellow metal testing the $1100 resistance area. The technical bias already remains bullish due to a Lower Low and Lower High in the recent waves on hourly, four-hour and daily time-frames.
As of this writing, the yellow metal is being traded around $1099. A hurdle may be noted near $1100, the psychological level ahead of $1107, the 23.6% fib level and then $1126, the 38.2% fib level as demonstrated in the following daily chart.
On the downside, the pair is expected to find a support around $1077, the swing low of Friday’s bullish pin bar ahead of $1050, the psychological number and then $1043, the multi-year low. The technical bias will remain bearish as long as the $1205 resistance area is intact.
US Durable Goods
The US Bureau of Census is due to release the Durable Goods data today during the early New York session. According to the average forecast of different economists, the durable goods registered 3.0% reading in June as compared to -2.2% reading in the month before. Generally speaking, higher durable goods orders, received by the US manufacturers, are seen as positive for the American economy and vice versa. Thus a better than expected actual outcome will be considered bearish for gold.
Binary Option Trade Idea
Considering the overall technical and fundamental outlook, buying the long term digital call options around the $1100-$1120 support area could be a good strategy.