Gold Price Extends Rally, Fed Decision Next
- Gold price is gaining pace above the $1,800 and $1,820 resistance levels.
- It broke a connecting bearish trend line at $1,842 on the 4-hours chart.
- EUR/USD extended decline below the 1.1300 support zone.
- GBP/USD managed to stay above the 1.3440 support.
Gold Price Technical Analysis
After forming a base above $1,820, gold price started a fresh increase against the US Dollar. The price gained pace for a move above the $1,832 resistance zone.
The 4-hours chart of XAU/USD indicates that the price jumped above the $1,840 level. The price settled well above the 100 simple moving average (red, 4-hours) and the 200 simple moving average (green, 4-hours).
Recently, there was a break above a connecting bearish trend line at $1,842 on the same chart. The price spiked above the $1,850 level.
On the upside, the price is facing resistance near the $1,855 level. The next resistance is near the $1,865 level. A clear break above $1,865 could send the price toward the $1,880 resistance zone in the near term.
On the downside, there is a short-term support forming near the $1,840 level. The next major support is near $1,830, below which there is a risk of a move towards $1,820. Any more losses might send the price towards $1,800.
Looking at EUR/USD, the pair failed to stay above the 1.1300 support and extended decline. Besides, GBP/USD was able to stay above the 1.3440 support zone.
Economic Releases to Watch Today
- Fed Interest Rate Decision – Forecast 0.25%, versus 0.25% previous.
- BoC Interest Rate Decision – Forecast 0.25%, versus 0.25% previous.