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Gold Price Settles Above $1,850, Oil Dips Below Key Support

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Aayush Jindal

Key Highlights

  • Gold price climbed higher above the key $1,850 resistance zone.
  • A crucial bullish trend line is forming with support near $1,835 on the 4-hours chart.
  • EUR/USD is consolidating gains above the 1.2180 support zone.
  • GBP/USD started a downside correction after it failed to stay above 1.4200.

Gold Price Technical Analysis

After holding gains above $1,800, gold price extended its upward move against the US Dollar. The price broke the key $1,850 resistance zone to move further into a positive zone.

The 4-hours chart of XAU/USD indicates that the price settled nicely above the $1,850 resistance, the 100 simple moving average (red, 4-hours), and the 200 simple moving average (green, 4-hours).

The upward move gained pace above the $1,865 resistance. The price even broke the $1,880 level. The current price action suggests that the price might continue to rise above the $1,900 level. The next major resistance sits near the $1,940 level.

On the downside, an initial support is near the $1,865 level. The first key support is near the $1,850 level. There is also a crucial bullish trend line forming with support near $1,835 on the same chart.

If there is a downside break below the trend line, the price could drop towards the $1,800 support zone in the coming days.

Looking at EUR/USD, the pair is still holding gains above 1.2180 and it could climb further above 1.2240. Besides, GBP/USD corrected gains, but it is likely to find bids near the 1.4100 zone. Conversely, crude oil price saw a bearish move below the $64.50 support zone.

Economic Releases to Watch Today

  • US Initial Jobless Claims - Forecast 450K, versus 473K previous.
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