Aayush Jindal
Key Highlights
- Gold started a fresh increase above the $2,600 support.
- A connecting bullish trend line is forming with support at $2,630 on the 4-hour chart.
- Oil prices are struggling to recover above the $70.50 resistance.
- EUR/USD is consolidating losses near the 1.0520 level.
Gold Price Technical Analysis
Gold prices remained well-bid near the $2,600 zone against the US Dollar. The price formed a base and started a fresh increase above $2,620 and $2,640.
The 4-hour chart of XAU/USD indicates that the price struggled to clear the $2,665 level and corrected some gains. The price declined below the 50% Fib retracement level of the upward move from the $2,536 swing low to the $2,721 high.
The price is now trading above the 100 Simple Moving Average (red, 4 hours), but is below the 200 Simple Moving Average (green, 4 hours).
On the upside, immediate resistance is near the $2,665 level. The first major resistance sits near the $2,680 level. A clear move above the $2,680 resistance could open the doors for more upsides.
The next major resistance could be $2,700, above which the price could rally toward the $2,720 level. On the downside, initial support is near the $2,635. The first major support is near the $2,630 level. There is also a connecting bullish trend line forming with support at $2,630.
The main support is now $2,605. A downside break below the $2,605 support might call for more downsides. The next major support is near the $2,565 level.
Looking at EUR/USD, the pair started a short-term recovery wave above the 1.0480 level but upsides might be limited above 1.0550.
Economic Releases to Watch Today
- US Initial Jobless Claims - Forecast 215K, versus 213K previous.
