- XAU/USD signaled exhausted buyers.
- The manufacturing and services data could shake the markets tomorrow.
- The median line (ml) could attract the price.
The gold price retreated a little in the short term but the bias remains bullish. The XAU/USD is trading at $1,921 at the time of writing and it could resume its growth anytime.
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Fundamentally, the US Existing Home Sales came in at 4.02 above 3.95M expected and forced the yellow metal to drop.
In addition, the UK Retail Sales came in worse than expected, while the Canadian retail Sales reported better than expected data on Friday.
Today, the US is to release the CB Leading Index while the Eurozone releases the Consumer Confidence. The ECB President Lagarde Speaks may have an impact as well.
Tomorrow, the manufacturing and services data could really shake the markets. The US Flash Services PMI could jump from 44.7 to 45.0 points while Flash Manufacturing PMI is expected to increase from 46.2 points to 46.5 points.
In addition, the UK and German Flash Manufacturing PMI and Flash Services PMI should remain in the contraction territory.
The Eurozone Flash Manufacturing PMI may signal further contraction, while the Flash Services PMI is expected to jump to 50.3 signaling expansion.
Gold price technical analysis: Trending up in the channel
Technically, the price of gold challenges the uptrend line and the weekly pivot point of $1,920.
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After its failure to come back higher towards the channel’s upside line, XAU/USD signaled exhausted buyers and announced a downside movement.
A valid breakdown below the support levels, escaping from the channel’s body, announces that the swing higher could be over. The rate retested the upper median line (uml) confirming it as dynamic resistance. As long as it stays within the pitchfork’s body, the price could approach and reach the median line (ml).
The median line (ml) acts as a magnet and could attract the price. A larger downside movement could be confirmed by a valid breakdown below the median line (ml). On the contrary, false breakdowns through the uptrend line should indicate upside continuation.
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