FX.co ★ Technical analysis of Gold for July 23, 2014

The US dollar is strenghtened due to that the US House price index rose 0.4% in May. The CPI increased 0.3% in June. The housing market sends an optimism wave towards the housing market recovery, which helps the US economy to recover. The yellow metal moved to the crucial weekly support level at $1,399.50, a low made at $1,301.70.

On a monthly closing basis, if the metal closes below $1,299, we can see $1,286, $1,282, $1,275 and $1,270 levels, with strong support at $1,291 levels.

On a weekly closing basis, if the metal holds above $1,291, the downfall will pause for a while and the pair will close below $1,318, the uptrend will pause.

In the daily chart, the metal is facing strong resistance at 20 DSma on a closing basis at $1,318. Until the metal trades below that, the weakness persists. The intraweek trading range is framed between $1,299.50-$1,318. On the down side, if the metal hits $1,299.50, we can see $1,297, $1,294 and $1,291 immediately.

On an intraday basis, the metal is trading at the resistance level of $1,307.10. It has resistance at $1,307.80 (12hr high) and $1,310.70 (21hr Sma). Until the pair trades below $1,324.50, we recommend to sell on an upmove on a weekly basis.

Sell below $1,304, with targets at $1,303.50, $1,301.70 and $1,299.50 - intraday

Buy above $1,311, for targets $1,315 and $1,318 (maybe $1,324).

Risky traders can buy with sl $1,304 for targets $1,310 and $1,315.