Aayush Jindal
Key Highlights
- Gold is attempting a fresh increase above the $2,020 resistance.
- It broke a key bearish trend line with resistance at $2,012 on the 4-hour chart.
- EUR/USD is showing a few positive signs above the 1.0780 resistance.
- Bitcoin prices surged over 10% and climbed toward $58,000.
Gold Price Technical Analysis
Gold prices started a fresh increase from the $1,985 support against the US Dollar. The bulls cleared the $2,000 resistance to start a decent recovery wave.
The 4-hour chart of XAU/USD indicates that the price settled above the $2,015 level, the 100 Simple Moving Average (red, 4 hours), and the 200 Simple Moving Average (green, 4 hours).
Besides, it broke a key bearish trend line with resistance at $2,012 on the same chart. There was a spike above the 61.8% Fib retracement level of the downward move from the $2,065 swing high to the $1,984 low.
On the upside, the price is facing hurdles near the $2,040 level. An upside break above the $2,040 level could send the price toward the $2,046 resistance. It is close to the 76.4% Fib retracement level of the downward move from the $2,065 swing high to the $1,984 low.
The next major resistance is near the $2,050 level, above which Gold could test $2,065. Any more gains might send it toward $2,080.
Initial support is near the $2,020 level or the 100 Simple Moving Average (red, 4 hours). The first major support sits at $2,012. Any more losses might call for a move toward the $1,985 level in the coming days.
Looking at EUR/USD, the pair is showing a few positive signs above 1.0780, but the bulls face many hurdles above 1.0850.
Economic Releases to Watch Today
- US Housing Price Index for Dec 2024 (MoM) - Forecast +0.3%, versus +0.3% previous.
- US Durable Goods Orders for Jan 2024 – Forecast -4.8% versus 0% previous.
