Key Highlights
- Gold found support near $3,200 and started a fresh increase.
- A key bullish trend line is forming with support at $3,285 on the 4-hour chart.
- EUR/USD is still consolidating gains below the 1.1420 resistance zone.
- WTI Crude Oil prices could start another decline below the $57.00 level.
Gold Price Technical Analysis
Gold prices remained supported above $3,200. The price formed a base and started a fresh increase above the $3,240 and $3,250 resistance levels.
The 4-hour chart of XAU/USD indicates that the price settled above the $3,300 level, the 200 Simple Moving Average (green, 4 hours), and the 100 Simple Moving Average (red, 4 hours). There was a clear move above the 61.8% Fib retracement level of the downward move from the $3,500 swing high to the $3,201 low.
There is also a key bullish trend line forming with support at $3,285 on the same chart. On the upside, immediate resistance is near the $3,430 level and the 76.4% Fib retracement level of the downward move from the $3,500 swing high to the $3,201 low.
The next major resistance sits near the $3,460 level. A clear move above the $3,460 resistance could open the doors for more upsides. The next major resistance could be $3,480, above which the price could rally toward the milestone level of $3,500.
On the downside, initial support is near the $3,350 level. The first key support is near $3,315. The next major support is near the $3,305 level. The main support is now $3,300. A downside break below the $3,300 support might call for more downsides. The next major support is near the $3,200 level.
Looking at EUR/USD, the pair started a consolidation phase and might soon aim for a fresh increase if it clears the 1.1420 resistance.
Economic Releases to Watch Today
- BoE Interest Rate Decision – Forecast 4.25%, versus 4.5% previous.
- US Initial Jobless Claims – Forecast 230K, versus 241K previous.
