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Aayush Jindal

Key Highlights

  • 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.