Gold Price Exposes to Risk of Losses, USD/JPY Ascends Higher
- Gold price is experiencing resistance close to $1850 and $1,860.
- On the 4-hour chart, an ascending trendline is building up with support close to $1,835.
- USD/JPY improved and transacted to a new multi-year high beyond 136.00.
- The UK CPI will likely rise by 9.1% in May 2022 (YoY), up from 9.0%.
Gold Price Technical Analysis
The price of gold experienced a sharp decline from the $1,875 resistance region against the US Dollar. It transacted at a price below the $1,850 support and strived to drop towards $1800 but was wedged by strong support levels.
On the 4-hours chart of XAUUSD, it shows that the price resolved beneath the $1,850 level, the 200 simple moving average (green, 4-hours), and the 100 simple moving average (red, 4-hours).
Lately, it transacted as low as $1,804 then began an upside correction. A ride above the $1,825 and $1,830 levels was seen. There was a short-term projection above the $1,845 level and the 100 simple moving average (red, 4-hours).
Still, gold is constrained by a strong resistance near the $1,850 level. A confirmed move above the $1,850 resistance could trigger a bull run above the $1,860 resistance region. The succeeding resistance level stays close to $1,875.
If no further uptrend is experienced, the price will likely decline in gains and test the $1820 support. The succeeding key support is close to the $1,815, beneath which further price decline will possibly set in towards $1,800.
For USD/JPY, a new increase was observed and it ascended higher to a fresh multi-year high above 136.00.
Economic Releases to Watch Today
- UK Consumer Price Index for May 2022 (YoY) – Forecast +9.1%, versus +9.0% previous.
- UK Core Consumer Price Index for May 2022 (YoY) – Forecast +6.0%, versus +6.2% previous.
- Canadian Consumer Price Index for May 2022 (MoM) – Forecast +1.0%, versus +0.6% previous.
- Canadian Consumer Price Index for May 2022 (YoY) – Forecast +7.4%, versus +6.8% previous.
Author: Amogo Solomon
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