The US inflation data rekindled the demand for the dollar as a safe haven. The US CPI was revised with an increase in June to 5.4% year-on-year, well above the 4.9% expected. The core CPI was also revised with an increase from 3.8% to 4.5%. This alarming data was assured investors to buy the US Dollar and sell the Euro and other crosses with the dollar.

However, Gold has not suffered from this downward pressure as might be expected. In fact, we saw bullish momentum to the 1,816 resistance zone, then the price retraced and found support at the bottom of the 21 SMA at 1,805.

The yellow metal, XAU / USD, is trading below the strong resistance of 2/8 of murray (1,816). Yesterday gold again tried to break it without success. The price is now located below this zone just above the SMA of 21 (1,805). If it consolidates below this level, a fall is expected to the support zone of 1,781.

In the opposite direction, a fall below the zone of SMA 21 at 1,805, for this, Gold must also break the uptrend channel in 4-hour charts. (View chart)

The breaking point is the level of 1,798. A consolidation below this zone may weaken the strength of gold, and a correction could take place to the 1/8 murray support zone at 1,781.

Our outlook will be bearish only if Gold breaks the uptrend channel and consolidates below this level. So, we must monitor the 1,798 area, to be able to sell below with targets at 1,781. (1/8).

We can buy only if gold consolidates or trades above 1,805. Due to the support, it adds to the 21 SMA. There is a possibility of a technical bounce to the resistance of 1,816.

The eagle indicator is in the overbought zone which suggests that there could be a correction in the next few days.

Support and Resistance Levels for July 14 - 15, 2021

Resistance (3) 1,836

Resistance (2) 1,822

Resistance (1) 1,816

----------------------------

Support (1) 1,798

Support (2) 1,788

Support (3) 1,779

***********************************************************

Trading tip for XAU/USD (Gold) for July 14 - 15, 2021

Buy above SMA 21 at 1,805, with take profit at 1,816 (2/8) and 1,836 (EMA 200), stop loss below 1,800.

Sell below 1,803 (SMA 21), of if breaks 1798, with take profit at 1,790 and 1781 (1/8), stop loss above 1,805.