Gold Price Gains Bullish Momentum, $1,800 Presents Resistance
- Gold price gained momentum after it broke the $1,740 resistance.
- It surpassed a key bearish trend line with resistance near $1,755 on the 4-hours chart.
- EUR/USD is still struggling to clear the key 1.0280 resistance zone.
- The US ISM Services PMI could decline from 55.3 to 53.5 in July 2022.
Gold Price Technical Analysis
Gold price started a decent upward move from the $1,680 zone against the US Dollar. The price was able to surpass the $1,700 and $1,720 resistance levels.
The 4-hours chart of XAU/USD indicates that the price gained pace after it broke the $1,740 resistance. There was a clear move above a key bearish trend line with resistance near $1,755.
Besides, the price spiked above the 50% Fib retracement level of the downward move from the $1,879 swing high to $1,680 low. The price even settled above the $1,750 level, the 200 simple moving average (green, 4-hours), and the 100 simple moving average (red, 4-hours).
The next major resistance is near the $1,800 level. It is near the 61.8% Fib retracement level of the downward move from the $1,879 swing high to $1,680 low.
Any more gains might send the price towards the $1,825 level. On the downside, an initial support is near the $1,765 level and the 100 simple moving average (red, 4-hours).
The next major support is near the $1,750 level, below which the price could accelerate lower. In the stated case, the price may perhaps decline towards the $1,720 level.
Looking at EUR/USD, the pair is still facing a strong resistance near 1.0280. Besides, GBP/USD corrected lower from the 1.2300 zone.
Economic Releases to Watch Today
- Germany’s Services PMI for July 2022 - Forecast 49.2, versus 49.2 previous.
- Euro Zone Services PMI for July 2022 – Forecast 50.6, versus 50.6 previous.
- UK Services PMI for July 2022 – Forecast 53.3, versus 53.3 previous.
- US Services PMI for July 2022 – Forecast 47.0, versus 47.0 previous.
- US ISM Services PMI for July 2022 – Forecast 53.5, versus 55.3 previous.