07.07.201506:29 Forex Analysis & Reviews: Technical analysis of Gold for July 07, 2015

Long-term review

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The metal has been extending selling pressure for more than a week except for 1 day. The metal is approaching support zone between $1,162.00 and $1,160.00. A daily close below $1,160.00 openes the way to re-test of the previous lows of $1,142.50 and $1,135.00. In all time frames, the precious metal lost all the moving averages. Ahead of the FOMC meeting minutes, the metal is trading lower at the Asian session.

After yesterday's US weak PMI data, the metal is unable to take this as an advantage to move higher. This shows weakness over the board. We do not expect the FOMC minutes to deliver surprising data. In this case we expect a mild pullback towards $1,173.00, $1,180.00, $1,187.00, and $1,190.00. This view will be canceled in case the metal fell below $1,160.00. As per the below, that the metal was rejected at the descending trendline at the previous session. Big moves loom above $1,175.00 and panic is expected below $1,160.00. A daily close above $1,175.00 will lighten up the bullish view.

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