Gold Price Aims Fresh Increase, Fed Decision Next
- Gold price is forming a support base above the $1,790 zone.
- A key declining channel is forming with resistance near $1,808 on the 4-hours chart.
- EUR/USD seems to be eyeing a steady recovery wave above 1.1840.
- The Fed interest rate decision is scheduled today (forecast – no change from 0.25%).
Gold Price Technical Analysis
Recently, gold price saw a downside correction from the $1,834 high against the US Dollar. The price declined below the $1,820 support zone to enter a short-term bearish zone.
The 4-hours chart of XAU/USD indicates that the price struggled to stay above $1,800, the 100 simple moving average (red, 4-hours), and the 200 simple moving average (green, 4-hours).
There was a break below the 23.6% Fib retracement level of the upward move from the $1,750 swing low to $1,834 high. However, the bulls were active near the $1,790 zone.
It seems like the 50% Fib retracement level of the upward move from the $1,750 swing low to $1,834 high is acting as a support. There is also a key declining channel forming with resistance near $1,808 on the same chart.
If there is an upside break above $1,810 and $1,820, the price is likely to test $1,834. The next key resistance is near the $1,850 level. If not, the price could start a fresh decline below the $1,790 support level. The next major support is near the $1,775 level.
Looking at EUR/USD, the pair is likely forming a base above 1.1750 and it could recover if there is a clear break above 1.1840.
Economic Releases to Watch Today
- Fed Interest Rate Decision - Forecast 0.25%, versus 0.25% previous.
- Canadian Consumer Price Index for June 2021 (MoM) – Forecast +0.4%, versus +0.4% previous.
- Canadian Consumer Price Index for June 2021 (YoY) – Forecast +3.2%, versus +3.6% previous.