Gold Price Could Start Correction, Dollar Gains
- Gold price extended increase above the $1,850 resistance zone.
- It traded below a key bullish trend line with support near $1,867 on the 4-hours chart.
- Crude oil price is struggling to stay above the $80.00 support.
- The Euro Zone CPI could increase 4.1% in Sep 2021 (YoY).
Gold Price Technical Analysis
This past week, gold started a major increase above $1,820 against the US Dollar. The price gained pace above the $1,840 level and extended increase.
The 4-hours chart of XAU/USD indicates that the price settled nicely above $1,850 level, the 200 simple moving average (green, 4-hours), and the 100 simple moving average (red, 4-hours).
The price traded as high as $1,877 and is currently correcting gains. An immediate support is near the $1,850 level. It is near the 23.6% Fib retracement level of the upward move from the $1,758 swing low to $1,877 high.
The main support is now forming near the $1,820 level. It is near the 50% Fib retracement level of the upward move from the $1,758 swing low to $1,877 high.
On the upside, an immediate resistance is near the $1,878 level. The next key resistance is near the $1,880 level, above which the price might rise towards the $1,900 level.
Looking at EUR/USD, the pair extended its decline and there was a sharp decline below the 1.1400 and 1.1365 support levels.
Economic Releases to Watch Today
- UK Consumer Price Index for Oct 2021 (YoY) – Forecast +0.8%, versus +0.3% previous.
- UK Core Consumer Price Index for Oct 2021 (YoY) – Forecast +3.9%, versus +3.1% previous.
- Euro Zone CPI for Sep 2021 (YoY) - Forecast +4.1%, versus +4.1% previous.
- Euro Zone CPI for Sep 2021 (MoM) - Forecast +0.8%, versus +0.5% previous.
- Canadian Consumer Price Index for Oct 2021 (MoM) – Forecast +0.7%, versus +0.2% previous.
- Canadian Consumer Price Index for Oct 2021 (YoY) – Forecast +4.7%, versus +4.4% previous.