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Gold Price Could Struggle Near $1,780, Oil Dives

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Aayush Jindal

Key Highlights

  • Gold price is attempting a recovery wave from the $1,760 zone.
  • A major bearish trend line is forming with resistance near $1,784 on the 4-hours chart.
  • Crude oil price declined sharply below $82.00 support and tested $80.00.
  • EUR/USD is consolidating below 1.1620 and 1.1650.

Gold Price Technical Analysis

This past week, gold saw a bearish reaction from the $1,795 level against the US Dollar. The price traded below the $1,785 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 $1,758 before there was a decent recovery wave.

The price was able to climb above the $1,770 level, but it is still below the 200 simple moving average (green, 4-hours) and the 100 simple moving average (red, 4-hours). It is also facing resistance near the 50% Fib retracement level of the recent decline from the $1,796 swing high to $1,758 low.

The first key resistance is forming near the $1,780 level. There is also a major bearish trend line forming with resistance near $1,784 on the same chart.

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 $1,765 and $1,760. The next key support is near $1,750, below which there is a risk of a move towards $1,720.

Looking at EUR/USD, the pair attempted is still trading well below the 1.1620 and 1.1650 resistance levels.

Economic Releases to Watch Today

  • Germany’s Services PMI for Oct 2021 - Forecast 52.4, versus 52.4 previous.
  • Euro Zone Services PMI for Oct 2021 – Forecast 54.7, versus 54.7 previous.
  • BoE Interest Rate Decision – Forecast 0.1%, versus 0.1% previous.
  • US Initial Jobless Claims - Forecast 277K, versus 281K previous.
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