Gold price formed a short term top near $1,298 and later declined against the US Dollar.
There was a break below a major bullish trend line with support at $1,288 on the 4-hours chart of XAU/USD.
The Euro Area Business Climate Index in Dec 2018 declined from the last revised reading of 1.04 to 0.82.
Today’s high risk event is the Federal Open Market Committee meeting minutes in the US.
Gold Price Technical Analysis
After a massive uptrend from the $1,240 support, gold price faced selling interest above $1,295 against the US Dollar. The price formed a short term top near $1,298 and later declined below $1,285.The 4-hour chart of XAU/USD indicates that the price was rejected near the $1,298 level, resulting a sharp drop below key supports. The decline was such that the price settled below the $1,290 support area.More importantly, there was a break below a major bullish trend line with support at $1,288. The price traded towards the $1,276 level and later recovered. However, the broken trend line and the $1,295 level acted as a solid resistance.A fresh decline initiated and the price moved below the 76.4% Fib retracement level of the upward move from the $1,276 low to $1,295 high. The current price action is bearish and it seems like the price may continue to decline towards $1,270.An intermediate support is $1,272 and the 1.236 Fib extension level of the upward move from the $1,276 low to $1,295 high. On the upside, an initial resistance is at $1,288 and $1,290. However, a proper break above $1,295 and $1,298 is needed for more gains above $1,300.Today’s FOMC meeting minutes in the US could impact gold price in the short term for a drop to $1,270 or a rise to $1,295. Similarly, major pairs like EUR/USD, GBP/USD and USD/JPY might be volatile in the coming sessions.
Economic Releases to Watch Today
Euro Zone Unemployment Rate for Nov 2018 - Forecast 8.1%, versus 8.1% previous.
BoC Interest Rate Decision – Forecast 1.75%, versus 1.75% previous.
The 4-hour chart of XAU/USD indicates that the price was rejected near the $1,298 level, resulting a sharp drop below key supports. The decline was such that the price settled below the $1,290 support area.More importantly, there was a break below a major bullish trend line with support at $1,288. The price traded towards the $1,276 level and later recovered. However, the broken trend line and the $1,295 level acted as a solid resistance.A fresh decline initiated and the price moved below the 76.4% Fib retracement level of the upward move from the $1,276 low to $1,295 high. The current price action is bearish and it seems like the price may continue to decline towards $1,270.An intermediate support is $1,272 and the 1.236 Fib extension level of the upward move from the $1,276 low to $1,295 high. On the upside, an initial resistance is at $1,288 and $1,290. However, a proper break above $1,295 and $1,298 is needed for more gains above $1,300.Today’s FOMC meeting minutes in the US could impact gold price in the short term for a drop to $1,270 or a rise to $1,295. Similarly, major pairs like EUR/USD, GBP/USD and USD/JPY might be volatile in the coming sessions.