Key Highlights
- Gold corrected gains after it failed to clear the $3,400 resistance.
- A major bearish trend line is forming with resistance at $3,345 on the 4-hour chart.
- WTI Crude Oil prices declined below the $63.20 support zone.
- EUR/USD is consolidating above the 1.1600 support zone.
Gold Price Technical Analysis
Gold prices failed to settle above $3,400 and corrected gains against the US Dollar. It declined below the $3,375 and $3,360 support levels.
The 4-hour chart of XAU/USD indicates that the price settled below the $3,350 level, the 100 Simple Moving Average (red, 4 hours), and the 200 Simple Moving Average (green, 4 hours). There was a move below the 50% Fib retracement level of the upward move from the $3,268 swing low to the $3,408 high.
On the downside, initial support is near the $3,320 level. It is close to the 61.8% Fib retracement level of the upward move from the $3,268 swing low to the $3,408 high.
The first key support is $3,310. The next major support is near the $3,300 level. A downside break below $3,300 might call for more downsides. The next key zone to watch could be $3,280.
On the upside, immediate resistance is near the $3,345 level. There is also a major bearish trend line forming with resistance at $3,345 on the same chart. The next major resistance sits near the $3,355 level.
A clear move above $3,355 could open the doors for more upside. In the stated case, the bulls could aim for a move toward $3,400, above which the price could rally toward the milestone level of $3,450.
Looking at WTI Crude Oil, the price shows many bearish signs and could decline further below the $62.00 support zone.
Economic Releases to Watch Today
- Fed’s Waller speech.
- FOMC Minutes.
- Fed’s Bostic speech.
