Aayush Jindal
Key Highlights
- Gold started a consolidation phase after a dip to $3,885.
- A contracting triangle is forming with support at $3,970 on the 4-hour chart.
- WTI Crude Oil prices could struggle to recover above $62.20.
- EUR/USD is again moving lower and could drop to 1.1450.
Gold Price Technical Analysis
Gold prices corrected some gains and traded below $4,000 against the US Dollar. It even tested $3,885 before starting a consolidation phase.
The 4-hour chart of XAU/USD indicates that the price settled below the 100 Simple Moving Average (red, 4 hours) but stayed above the 200 Simple Moving Average (green, 4 hours).
Recently, there was a move above the 23.6% Fib retracement level of the downward move from the $4,381 swing high to the $3,886 low. On the upside, immediate resistance is near the $4,070 level. The next major resistance sits near the $4,100 level.
A clear move above $4,100 could open the doors for more upside. In the stated case, the bulls could aim for a move toward $4,135 and the 50% Fib retracement level of the downward move from the $4,381 swing high to the $3,886 low.
On the downside, initial support is near the $3,970 level. There is also a contracting triangle forming with support at $3,970. The first key support is $3,945. The next major support is near the $3,885 level. A downside break below $3,885 might call for more downsides. The next key zone to watch could be $3,800.
Looking at WTI Crude Oil, the price attempted a decent recovery wave, but the bears remained active below the $62.50 level.
Economic Releases to Watch Today
- ECB's President Lagarde speech.
- Fed's Bowman speech.
- BoE's Breeden speech.
