Key Highlights
- Gold price is showing positive signs above the $1,785 and $1,800 support levels.
- A major bullish trend line is forming with support near $1,805 on the 4-hours chart.
- EUR/USD trimmed gains after it failed to clear the 1.1480 zone.
- GBP/USD corrected gains below 1.3650 and 1.3620.
Gold Price Technical Analysis
After another rejection near $1,830, gold price corrected lower against the US Dollar. The price declined below $1,800, but the bulls were active near $1,785.
The 4-hours chart of XAU/USD indicates that the price traded as low as $1,782 before a fresh increase. The bulls again attempted an upside break above $1,830 but failed.
A high was formed near $1,829 and the price is now consolidating. On the downside, there is a key support forming near the $1,805 level. There is also a major bullish trend line forming with support near $1,805 on the same chart.
The main support is near $1,782, below which there is a risk of a move towards $1,760. Any more losses might send the price towards $1,750.
On the upside, the price is facing resistance near the $1,825 level. The main resistance is near the $1,830 level. A clear break above $1,830 could send the price toward the $1,850 resistance zone in the near term.
Looking at EUR/USD, the pair failed to clear the 1.1480 resistance zone and started a fresh decline below 1.1400. Similarly, GBP/USD trimmed gains and declined over 150 pips.
Economic Releases to Watch Today
- UK Consumer Price Index for Dec 2021 (YoY) – Forecast +5.2%, versus +5.1% previous.
- UK Core Consumer Price Index for Dec 2021 (YoY) – Forecast +3.9%, versus +4.0% previous.
- Canadian Consumer Price Index for Dec 2021 (MoM) – Forecast -0.1%, versus +0.2% previous.
- Canadian Consumer Price Index for Dec 2021 (YoY) – Forecast +4.8%, versus +4.7% previous.
