Key Highlights
- Gold price declined below the $1,550 and $1,520 support levels.
- A key bearish trend line is forming with resistance near $1,530 on the 4-hours chart of XAU/USD.
- EUR/USD and GBP/USD declined heavily below 1.1000 and 1.2000 respectively.
- The US Initial Jobless Claims for the week ending March 07, 2020 could rise from 211K to 220K.
Gold Price Technical Analysis
Earlier this month, gold price topped near the $1,700 resistance area against the US Dollar. As a result, there was a sharp decline below the $1,650 and $1,580 support levels.
The 4-hours chart of XAU/USD indicates that the price extended its decline below the $1,520 support area and the $1,480 pivot level. More importantly, it settled well below the 100 simple moving average (red, 4-hours) and the 200 simple moving average (4-hours, green).
A new monthly low is formed near the $1,451 level and the price is currently correcting higher. It climbed above the $1,500 level, but the bulls are facing a lot of hurdles on the upside near the $1,530 and $1,550 levels.
Besides, there is a key bearish trend line forming with resistance near $1,530 on the same chart. The main resistance is near $1,550 level (the previous breakdown zone).
If there is a break above $1,530 and $1,550, the price could continue to rise towards the 50% Fib retracement level of the downward move from the $1,703 high to $1,451 low.
Conversely, the price could start a fresh decline if it fails to recover above $1,530. An initial support is near the $1,480 level, below which the price could revisit the $1,450 support.
Looking at EUR/USD, the pair declined below the key 1.1000 and 1.0980 support levels. Moreover, GBP/USD fell significantly and it even broke the key 1.2000 support.
Economic Releases to Watch Today
- SNB Interest Rate Decision – Forecast -0.75%, versus -0.75% previous.
- US Initial Jobless Claims – Forecast 220K, versus 211K previous.
