HomeContributorsTechnical AnalysisGold Price Faces Rejection Near Key Resistance

Gold Price Faces Rejection Near Key Resistance

Key Highlights

  • Gold price failed to surpass a major resistance zone at $1,920.
  • There was a break below a key ascending channel at $1,904 on the 4-hours chart of XAU/USD.
  • EUR/USD is still struggling near 1.1800, GBP/USD retreated after testing the 1.3000 resistance.
  • The US Initial Jobless Claims in the week ending Oct 03, 2020 could decline from 837K to 820K.

Gold Price Technical Analysis

This past week, gold price climbed higher steadily above the $1,880 resistance against the US Dollar. However, it failed to clear the main $1,920 resistance and trimmed gains.

The 4-hours chart of XAU/USD indicates that the price faced a strong selling interest near the $1,910 and $1,920 levels (previous important support levels). There was no proper close above the 100 simple moving average (red, 4-hours) and the 200 simple moving average (green, 4-hours).

More importantly, it seems like the price struggled to settle above the 50% Fib retracement level of the downward move from the $1,973 high to $1,848 low.

The price started a fresh decline and traded below a key ascending channel with support at $1,904 on the same chart. It even spiked below the $1,880 support level.

The next major support is near the $1,865 level, below which there is a risk of a larger decline towards the $1,850 support. On the upside, the price might face hurdles near $1,905 and the 100 SMA. The main resistance is still near the $1,920 level, above which the price could start a strong increase.

Looking at EUR/USD, the pair is still struggling to settle and gain pace above the 1.1800 resistance. Similarly, GBP/USD failed to surpass the 1.3000 resistance and declined over 100 pips.

Economic Releases to Watch Today

  • BoE’s Governor Bailey speech.
  • SNB’s Chairman Jordan speech.
  • US Initial Jobless Claims – Forecast 820K, versus 837K previous.

 

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