Gold Price Turns Red Below $1,650, Upsides Capped
- Gold price extended losses below the $1,650 support.
- A major bearish trend line is forming with resistance near $1,650 on the 4-hours chart.
- EUR/USD and GBP/USD might start a fresh downward move.
- USD/JPY could clear the last high at 145.90 and continue higher.
Gold Price Technical Analysis
Gold price remained in a bearish zone below the $1,688 resistance against the US Dollar. The price declined below the $1,665 support level to move into a bearish zone.
The 4-hours chart of XAU/USD indicates that the price extended losses below the $1,650 support, the 100 simple moving average (red, 4-hours), and the 200 simple moving average (green, 4-hours).
The price even spiked below the $1,625 level and traded as low as $1,620. It is now consolidating losses above the $1,620 level. On the upside, the price might face sellers near the $1,646 level. There is also a major bearish trend line forming with resistance near $1,650 on the same chart.
The next major resistance is near the $1,662 level. Any more gains might send the price towards the $1,688 resistance level.
On the downside, an initial support is near the $1,620 level. The next major support is near the $1,600 level, below which the price could accelerate lower. In the stated case, the price may perhaps decline towards the $1,580 level.
Looking at EUR/USD, the pair is facing resistance near the 0.9680 and 0.9700 levels. If the bears remain in action, the pair could decline below 0.9550.
Economic Releases to Watch Today
- US Pending Home Sales for August 2022 (YoY) - Forecast -1.4%, versus -1.0% previous.
- Federal Reserve Chair Jerome Powell Speech.