Sun, Oct 24, 2021 @ 00:12 GMT
HomeContributorsTechnical AnalysisGold Price Is Facing Crucial Hurdle Near $1,800

Gold Price Is Facing Crucial Hurdle Near $1,800

Key Highlights

  • Gold price started an upside correction from the $1,740 region.
  • A major bearish trend line is forming with resistance near $1,786 on the 4-hours chart.
  • EUR/USD declined below 1.1700, and GBP/USD is trading well below 1.3700.
  • The US Manufacturing PMI could increase from 61.1 to 62.5 in Sep 2021 (Preliminary).

Gold Price Technical Analysis

This past week, gold saw a bearish reaction below the $1,800 support against the US Dollar. The price broke the $1,780 support to move into a negative zone.

The 4-hours chart of XAU/USD indicates that the price even broke the $1,760 and $1,750 support levels. There was a daily close below $1,800, the 100 simple moving average (red, 4-hours), and the 200 simple moving average (green, 4-hours).

The price traded as low $1,741 and recently started an upside correction. The price corrected above the $1,765 and $1,770 levels.

There was a break above the 50% Fib retracement level of the key decline from the $1,808 swing high to $1,741 low. However, the price is facing an uphill task near the $1,785 and $1,790 levels.

There is also a major bearish trend line forming with resistance near $1,786 on the same chart. The next major resistance is near the $1,792 level and the 100 simple moving average (red, 4-hours). It is close to the 76.4% Fib retracement level of the key decline from the $1,808 swing high to $1,741 low.

The main hurdle sits at $1,800, above which the price could rise towards $1,825. Any more gains could lead the price towards the $1,850 level.

Looking at EUR/USD, the pair could start a decent recovery if there is a break above 1.1750. Conversely, GBP/USD is struggling to recover above 1.3700.

Economic Releases to Watch Today

  • Germany’s Manufacturing PMI for Sep 2021 (Preliminary) – Forecast 65.0, versus 62.5 previous.
  • Germany’s Services PMI for Sep 2021 (Preliminary) – Forecast 61.4, versus 60.8 previous.
  • Euro Zone Manufacturing PMI for Sep 2021 (Preliminary) – Forecast 62.0, versus 61.4 previous.
  • Euro Zone Services PMI for Sep 2021 (Preliminary) – Forecast 59.8, versus 59.0 previous.
  • UK Manufacturing PMI for Sep 2021 (Preliminary) – Forecast 61.4, versus 60.3 previous.
  • UK Services PMI for Sep 2021 (Preliminary) – Forecast 56.5, versus 55.0 previous.
  • US Manufacturing PMI for Sep 2021 (Preliminary) – Forecast 62.5, versus 61.1 previous.
  • US Services PMI for Sep 2021 (Preliminary) – Forecast 59.5, versus 55.1 previous.

 

Titan FXhttp://titanfx.com
Titan FX is a technology driven online ECN forex and commodities broker that provides traders with next generation trading conditions, institutional grade spreads, fast trade execution, deep top tier liquidity and the security of financial registration and oversight.

Featured Analysis

Learn Forex Trading