Key Highlights
- Gold price climbed higher above the key $1,800 resistance zone.
- A major bullish trend line is forming with support near $1,790 on the 4-hours chart.
- EUR/USD could attempt more upsides above 1.2200, GBP/USD is showing positive signs above 1.4100.
- The US CPI is likely to increase 3.6% in April 2021 (YoY), up from 2.6%.
Gold Price Technical Analysis
After forming a base above $1,750, gold price started a fresh increase against the US Dollar. The price broke the key $1,800 resistance zone to move into a positive zone.
The 4-hours chart of XAU/USD indicates that the price settled nicely above the $1,800 resistance, the 100 simple moving average (red, 4-hours), and the 200 simple moving average (green, 4-hours).
It even traded above the $1,820 resistance, but it struggled near $1,845. A high is formed near $1,845 and the price is consolidating gains. On the downside, an initial support is near the $1,808 level.
The 50% Fib retracement level of the upward move from the $1,770 swing low to $1,845 high is also near $1,808. The next major support is near the $1,800 level (the recent breakout zone).
There is also a major bullish trend line forming with support near $1,790 on the same chart. Besides, the 100 simple moving average (red, 4-hours) is also near the trend line and $1,788. If there is a downside break below the trend line, the price could drop towards the $1,770 swing low.
On the upside, the bulls seem to be facing a strong resistance near the $1,850 zone. A clear upside break above the $1,850 resistance zone could open the doors for a steady increase towards $1,880 or $1,900.
Looking at EUR/USD, the pair is still holding gains above 1.2120 and it could climb further above 1.2200. Besides, GBP/USD is likely to gain bullish momentum above the 1.4160 resistance.
Economic Releases to Watch Today
- UK GDP for Q1 2021 (QoQ) (Prelim) – Forecast -1.6%, versus +1.3% previous.
- German Consumer Price Index for April 2021 (YoY) – Forecast +2%, versus +2% previous.
- German Consumer Price Index for April 2021 (MoM) – Forecast +0.7%, versus +0.7% previous.
- US Consumer Price Index for April 2021 (MoM) – Forecast +0.2%, versus +0.6% previous.
- US Consumer Price Index for April 2021 (YoY) – Forecast +3.6%, versus +2.6% previous.
- US Consumer Price Index Ex Food & Energy March 2021 (YoY) – Forecast +2.3%, versus +1.6% previous.
