Gold Price Faces Resistance, US GDP Next
- Gold price started a strong upward move from the $1,680 region.
- It broke a key bearish trend line with resistance at $1,788 on the 4-hours chart.
- Crude oil price recovered above $65.00, but it is still well below $70.00.
- The US GDP could grow 6.7% in Q2 2021 (preliminary), up from 6.5%.
Gold Price Technical Analysis
Earlier this month, gold price saw a sharp decline below $1,750 against the US Dollar. The price even declined below $1,700 before the bulls appeared near $1,680.
The 4-hours chart of XAU/USD indicates that the price traded as low as $1,678. Recently, there was a strong recovery wave above the $1,720 and $1,750 resistance levels.
There was a break above a key bearish trend line with resistance at $1,788. The pair surpassed the $1,800 level, the 100 simple moving average (red, 4-hours), and the 200 simple moving average (green, 4-hours).
However, there was no upside continuation above $1,810. A high is formed near $1,808 and the price is now correcting gains. On the downside, there is a major support forming near $1,778 and the 100 simple moving average (red, 4-hours).
The 23.6% Fib retracement level of the upward move from the $1,678 swing low to $1,808 high is also near $1,778. If there is a downside break below $1,778, the price could correct lower towards $1,750.
The next major support could be $1,743 or the 50% Fib retracement level of the upward move from the $1,678 swing low to $1,808 high. On the upside, the price is facing resistance near $1,808 and $1,810.
The main resistance sits near $1,830, above which the price could rise towards $1,850. Looking at EUR/USD, the pair could attempt a recovery wave above the 1.1800 zone. Besides, GBP/USD could test the main 1.3800 resistance zone.
Economic Releases to Watch Today
- US Initial Jobless Claims - Forecast 350K, versus 348K previous.
- US Gross Domestic Product Q2 2021 (Preliminary) – Forecast 6.7% versus previous 6.5%.