Key Highlights
- Gold price started a downside correction from the $1,800 resistance zone.
- It traded below a key bullish trend line with support at $1,792 on the 4-hours chart.
- EUR/USD extended losses below 1.0200 before the bulls appeared.
- GBP/USD tested the key 1.2000 support zone.
Gold Price Technical Analysis
Gold price gained pace above the $1,750 resistance zone against the US Dollar. The price was able to surpass the $1,760 and $1,780 resistance levels.
The 4-hours chart of XAU/USD indicates that the price even broke the $1,800 level. However, there were limited upsides above $1,800. The price traded as high as $1,807 before there was a downside correction.
There was a move below the $1,800 and $1,795 levels. The price traded below the 23.6% Fib retracement level of the upward move from the $1,680 swing low to $1,807 high.
Besides, it traded below a key bullish trend line with support at $1,792 on the same chart. On the downside, an initial support is near the $1,768 level and the 100 simple moving average (red, 4-hours).
The next major support is near the $1,755 level or the 200 simple moving average (green, 4-hours), below which the price could accelerate lower. In the stated case, the price may perhaps decline towards the $1,745 level.
On the upside, the price might face sellers near the $1,790 level. The next major resistance is near the $1,800 level. Any more gains might send the price towards the $1,825 level.
Looking at EUR/USD, the pair extended losses below the 1.0200 level and tested the 1.0120 support, where the bulls emerged.
Economic Releases to Watch Today
- UK Consumer Price Index for July 2022 (YoY) – Forecast +9.8%, versus +9.4% previous.
- UK Core Consumer Price Index for July 2022 (YoY) – Forecast +5.9%, versus +5.8% previous.
- Euro Zone Gross Domestic Product Q2 2022 (Preliminary) (QoQ) – Forecast 0.7%, versus 0.7% previous.
- FOMC Meeting Minutes.
