Key Highlights
- Gold price found support near the $1,930 zone.
- A major bearish trend line is forming with resistance near $1,960 on the 4-hour chart.
- EUR/USD spiked below 1.0700 before the bulls took a stand.
- GBP/USD started a recovery wave above 1.2380.
Gold Price Technical Analysis
Gold price started a major decline from the $2,080 zone against the US Dollar. The price traded below the $2,000 support to move into a short-term bearish zone.
The 4-hour chart of XAU/USD indicates that the price traded below the $1,980 support, the 200 Simple Moving Average (green, 4 hours), and the 100 Simple Moving Average (red, 4 hours).
Finally, the price traded below $1,950 and tested $1,932. Recently, there was a recovery wave and a strong bullish candle was formed from the $1,932 low. However, the price is facing many hurdles near $1,958 and $1,960.
There is also a major bearish trend line forming with resistance near $1,960 on the same chart. A daily close above the trend line could initiate a decent increase.
The next major resistance is near the $1,990 level and the 200 Simple Moving Average (green, 4 hours). Any more gains might send the price toward the $2,020 resistance level.
Initial support is near the $1,932 level. The next major support is near $1,920. If the bulls fail to protect the $1,920 support, there is a risk of a major decline. In the stated case, the price could decline toward the $1,900 level.
Looking at EUR/USD, the pair declined sharply below the 1.0700 support before a short-term upside correction was initiated.
Economic Releases to Watch Today
- German Consumer Price Index for May 2023 (YoY) (Prelim) – Forecast +6.5%, versus +7.2% previous.
- German Consumer Price Index for May 2023 (MoM) (Prelim) – Forecast +0.2%, versus +0.4% previous.
- Canadian Gross Domestic Product for Q1 2023 (Annualized) – Forecast +2.5%, versus 0% previous.
