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Gold Struggles Below $1,780, Oil Corrects Lower

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Aayush Jindal

Key Highlights

  • Gold price corrected higher from the $1,720 region.
  • A major bearish trend line is forming with resistance near $1,760 on the 4-hours chart.
  • The US ADP employment increased 568K in Sep 2021, up from the last 340K (revised).
  • EUR/USD extended its decline and traded to a new monthly low at 1.1529.

Gold Price Technical Analysis

This past week, gold extended its decline below $1,740 against the US Dollar. The price traded close to the $1,720 region, where the bulls took a stand.

The 4-hours chart of XAU/USD indicates that the price traded as low as $1,722. It also settled below the $1,780 pivot level, the 100 simple moving average (red, 4-hours), and the 200 simple moving average (green, 4-hours).

Recently, there was an upside correction above the $1,740 level. The price climbed above the 50% Fib retracement level of the key drop from the $1,787 swing high to $1,722 low.

It even spiked above the $1,765 resistance. However, it seems like the price is struggling to gain pace above $1,760. There is also a major bearish trend line forming with resistance near $1,760 on the same chart.

The next key resistance is near the $1,770 zone. It is near the 76.4% Fib retracement level of the key drop from the $1,787 swing high to $1,722 low.

The main hurdle sits at $1,780, above which the price could rise towards $1,800. Any more gains could lead the price towards the $1,825 level.

Looking at EUR/USD, the pair remained in a bearish zone and it even traded below the 1.1550 support level. Besides, crude oil price corrected lower below $78.00.

Economic Releases to Watch Today

  • US Initial Jobless Claims - Forecast 350K, versus 362K previous.
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