Aayush Jindal
Key Highlights
- Gold struggled to regain traction and remained below $4,420.
- A bearish trend line is forming with resistance at $4,360 on the 4-hour chart.
- WTI Crude Oil dipped below $100.00 and might consolidate losses in the short term.
- EUR/USD gained bearish momentum and declined below 1.1450.
Gold Price Technical Analysis
Gold failed to surpass $4,450 and declined further against the US Dollar. The price dipped below $4,400 but remained above the $4,250 support zone.
The 4-hour chart of XAU/USD indicates that the price is struggling below $4,420, the 100 Simple Moving Average (red, 4 hours), and the 200 Simple Moving Average (green, 4 hours). On the upside, immediate resistance could be $4,350.
The first key resistance could be $4,360, the 100 Simple Moving Average (red, 4 hours), and a bearish trend line. A close above $4,360 could send the price toward the 61.8% Fib retracement level of the downward move from the $4,510 swing high to the $4,235 low at $4,405.
The 200 Simple Moving Average (green, 4 hours) is also near $4,415. Therefore, the bulls could face heavy resistance near the $4,405-$4,415 zone.
A clear move above $4,415 could open the door for more upside. In the stated case, the bulls could aim for a move toward $4,500. If there is a fresh decline, the price could test $4,250. The first major support sits at $4,220. The next support could be $4,200, below which the price might slide to $4,140. The main support sits at $4,000.
Looking at EUR/USD, the bears took control, pushed the pair below 1.1420, and might aim for more losses.
Economic Releases to Watch Today
- Fed's Hammack speech.
- Fed's Paulson speech.
- US Initial Jobless Claims - Forecast 201K, versus 196K previous.
