Gold Price Facing Uphill Task Near $1,920, EUR/USD Rallies

Key Highlights

  • Gold price is still facing a strong resistance near $1,920.
  • A bullish trend line is forming with support at $1,895 on the 4-hours chart of XAU/USD.
  • EUR/USD rallied sharply above the 1.1780 and 1.1800 resistance levels.
  • The UK Consumer Price Index could increase 0.5% in Sep 2020 (YoY), up from +0.2%.

 

Gold Price Technical Analysis

In the past few days, gold price remained well bid above the $1,875 and $1,880 support levels against the US Dollar. However, it is still facing a strong barrier near the $1,920 resistance.

The 4-hours chart of XAU/USD indicates that the price started a fresh decline from the $1,933 high. There was a break below the $1,900 support and the 200 simple moving average (green, 4-hours).

However, the pair remained well bid above $1,875 and the 100 simple moving average (red, 4-hours). A swing low is formed near $1,882 before the price recovered higher. On the upside, an initial resistance is near the $1,915 level or the 61.8% Fib retracement level of the downward move from the $1,933 high to $1,882 low.

The main hurdle is still near the $1,920 level, above which the price is likely to surge towards the $1,950 level. On the downside, there is a decent support forming near $1,895. There is also a bullish trend line forming with support at $1,895 on the same chart.

The next major support is near the $1,880 level, below which there is a risk of a larger decline towards the $1,850 support.

Looking at EUR/USD, the pair climbed higher sharply above 1.1780 and 1.1800. Conversely, GBP/USD is still facing a strong hurdle near the 1.3000 resistance.

Economic Releases to Watch Today

  • UK Consumer Price Index Sep 2020 (YoY) – Forecast +0.5%, versus +0.2% previous.
  • UK Core Consumer Price Index Sep 2020 (YoY) – Forecast +1.3%, versus +0.9% previous.
  • Canadian Consumer Price Index Sep 2020 (MoM) – Forecast -0.1%, versus -0.1% previous.
  • Canadian Consumer Price Index Sep 2020 (YoY) – Forecast +0.4%, versus +0.1% previous.