02.07.202010:15 Forex-elemzések és áttekintések: GOLD Profits From USD Weakness

Gold has decreased a little in the short term after the rumors that we could have a COVID-19 vaccine soon. Still, the outlook is bullish and the decline could be only a temporary one if USD continues its drop.

The gold price is located in the buyer's territory, so we could search for long opportunities in the short term. The US data will bring high volatility today, the yellow metal will register a strong move as well. A USD's further decline versus its rivals could lift the gold price.

Gold has found resistance at the weekly R1 ($1,785) level and now is retesting the median line (ML) of the minor orange ascending pitchfork. I've said yesterday that, gold remains bullish as long as it is trading above the median line (ml) of the ascending pitchfork.

The price has registered another false breakdown with great separation below the median line (ml) and now is retesting it, so the bias is still bullish. Only a valid breakdown below the median line (ml) and below the PP ($1,764) level will validate a further decline towards the $1,745 and towards the lower median line (lml).

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A rejection here could send the rate higher, the near-term target is seen at the R1 ($1,785) level, so only a valid breakout above this level will bring a great buying opportunity. Gold could climb towards the upper median line (uml), far above the $1,800 level, if it takes out the static resistance from the $1,785 level.

The gold price could drop deeper if the USD dominates the currency market after today's US figures, a valid breakdown below the median line (ml) and below the PP ($1,764) level will suggest that the upside movement is finished and that a correction is coming in the short term. A reversal could be confirmed only after a valid breakdown below the lower median line (lml), if the price escapes from the ascending pitchfork's body.