Aayush Jindal
Key Highlights
- Gold price is moving lower below the $1,950 pivot zone.
- A major bearish trend line is forming with resistance near $1,935 on the 4-hour chart.
- Crude oil prices are rising steadily above the $80 resistance.
- EUR/USD is consolidating above the 1.0920 support zone.
Gold Price Technical Analysis
Gold price struggled to clear $1,980 and started a fresh decline against the US Dollar. The price traded below the $1,950 support to move into a bearish zone.
The 4-hour chart of XAU/USD indicates that the price settled below $1,940, the 100 Simple Moving Average (red, 4 hours), and the 200 Simple Moving Average (green, 4 hours).
A low is formed near $1,923 and the price is now consolidating losses. Immediate resistance is near the $1,935 zone. There is also a major bearish trend line forming with resistance near $1,935 on the same chart.
The trend line is near the 23.6% Fib retracement level of the downward move from the $1,971 swing high to the $1,923 low.
The next major resistance is near the $1,950 level or the 50% Fib retracement level of the downward move from the $1,971 swing high to the $1,923 low, above which the price could rise toward $1,970.
Any more gains might send the price toward the $1,978 resistance level or even $1,985. Conversely, the price might decline further. Initial support is near the $1,925 level. The next major support is near $1,915.
If the bulls fail to protect the $1,915 support, there is a risk of a major decline. In the stated case, the price could decline toward the $1,900 level.
Looking at crude oil prices, there was a steady increase and it seems like the bulls might aim for a move toward the $85 level.
Economic Releases to Watch Today
- EIA Crude Oil Stocks Change – Forecast -0.233M, versus -17.049M previous.