Key Highlights
- Gold price is struggling to recover above the $1,780 resistance.
- A key bearish trend line is forming with resistance near $1,790 on the 4-hours chart.
- EUR/USD is consolidating below the 1.1350 and 1.1400 resistance levels.
- GBP/USD could aim a steady recovery above 1.3280 and 1.3300.
Gold Price Technical Analysis
This past week, gold saw a bearish reaction below the $1,800 support against the US Dollar. The price traded below the $1,780 support level to move into a bearish zone.
The 4-hours chart of XAU/USD indicates that the price even traded below the $1,775 support level. There was a close below the $1,800 level, the 200 simple moving average (green, 4-hours), and the 100 simple moving average (red, 4-hours).
A low was formed near $1,761 and is currently consolidating. An immediate resistance is near the $1,780 level.
The next major resistance is near the $1,790 level and the 100 SMA. There is also a key bearish trend line forming with resistance near $1,790 on the same chart. The trend line is also close to the 23.6% Fib retracement level of the downward move from the $1,877 swing high to $1,761 low.
A clear break above $1,790 could send the price toward the $1,820 resistance zone in the near term. The next key resistance is near the $1,835 level.
On the downside, the price might remain supported near $1,760. The main support is near $1,750, below which there is a risk of a break below $1,720.
Looking at EUR/USD, the pair is consolidating below the 1.1350 resistance level. Besides, GBP/USD could also recover if it settles above 1.3250.
Economic Releases to Watch Today
- UK Consumer Price Index for Nov 2021 (YoY) – Forecast +4.7%, versus +4.2% previous.
- UK Core Consumer Price Index for Nov 2021 (YoY) – Forecast +3.7%, versus +3.4% previous.
- Canadian Consumer Price Index for Nov 2021 (MoM) – Forecast +0.2%, versus +0.7% previous.
- Canadian Consumer Price Index for Nov 2021 (YoY) – Forecast +4.7%, versus +4.7% previous.
- Fed Interest Rate Decision – Forecast 0.25%, versus 0.25% previous.
