Gold Could Revisit $1,800, Dollar Corrects Lower
- Gold price stayed above the $1,750 support zone.
- A key bearish trend line is forming with resistance near $1,785 on the 4-hours chart.
- EUR/USD could gain pace if it settles above 1.1650.
- GBP/USD spiked above 1.3800 and it is trading above key supports.
Gold Price Technical Analysis
This past week, gold saw a bearish reaction from the $1,800 zone against the US Dollar. The price traded below the $1,780 support level, but downsides were limited.
The 4-hours chart of XAU/USD indicates that the price tested the $1,760 support zone. A low was formed near $1,760 before there was a fresh increase. The price was able to climb above the $1,775 resistance and the 200 simple moving average (green, 4-hours).
There was a break above the 50% Fib retracement level of the downward move from the $1,800 swing high to $1,760 low.
On the upside, the price is facing resistance near $1,785. A clear break above $1,785 could send the price toward the $1,800 resistance zone in the near term. The next key resistance is near the $1,820 level.
On the downside, the price might remain supported near $1,770 and the 200 SMA (H4). The main support is near $1,760, below which there is a risk of a break below $1,750.
Looking at EUR/USD, the pair attempted a decent recovery above 1.1620. A clear close above 1.1650 could set the pace for a steady increase.
Economic Releases to Watch Today
- UK Consumer Price Index for Sep 2021 (YoY) – Forecast +3.2%, versus +3.2% previous.
- UK Core Consumer Price Index for Sep 2021 (YoY) – Forecast +3.0%, versus +3.1% previous.
- Euro Zone CPI for Sep 2021 (YoY) - Forecast +3.4%, versus +3.4% previous.
- Euro Zone CPI for Sep 2021 (MoM) - Forecast +0.5%, versus +0.4% previous.
- Canadian Consumer Price Index for Sep 2021 (MoM) – Forecast +0.1%, versus +0.2% previous.
- Canadian Consumer Price Index for Sep 2021 (YoY) – Forecast +4.3%, versus +4.1% previous.