Key Highlights
- Gold price is struggling to recover above the $1,810 resistance.
- It broke a major bearish line with resistance near $1,792 on the 4-hours chart.
- EUR/USD is consolidating below the 1.1320 and 1.1350 resistance levels.
- The US GDP could grow 2.1% in Q3 2021.
Gold Price Technical Analysis
This past week, gold extended decline below the $1,780 support against the US Dollar. The price found support near $1,750 before it started an upside correction.
The 4-hours chart of XAU/USD indicates that the price recovered above the $1,780 resistance level. The price climbed above the 23.6% Fib retracement level of the downward move from the $1,877 swing high to $1,752 low.
Besides, there was a break above a major bearish line with resistance near $1,792 on the same chart. However, the price struggled to settle above $1,810 and the 200 simple moving average (green, 4-hours).
The 50% Fib retracement level of the downward move from the $1,877 swing high to $1,752 low also acted as a resistance.
A clear break above $1,810 could send the price toward the $1,830 resistance zone in the near term. The next key resistance is near the $1,850 level.
On the downside, the price might remain supported near $1,780. The main support is near $1,760, below which there is a risk of a move towards $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 1.3300.
Economic Releases to Watch Today
- UK GDP for Q3 2021 (QoQ) – Forecast +1.3%, versus +1.3% previous.
- US GDP for Q3 2021 – Forecast 2.1% versus previous 2.1%.
