Key Take-Aways
- The price of gold is battling to rise above $1,740.
- On the 4-hours chart, a significant negative trend line is developing with resistance close to $1,725.
- GBP/USD and EUR/USD have begun an upward correction.
- The price of crude oil tried to burst upward beyond the $102.50 barrier.
Price Technical Analysis of Gold
When compared to the US dollar, gold’s price began a significant drop from far above the $1,835 mark. Below the $1,780 and $1,760 support levels, the price fell.
The price of XAU/USD went below the $1,740 support, the 200 simple moving average (green, 4-hours), and the 100 simple moving average, according to the 4-hours chart (red, 4-hours).
It traded as low as $1,697 level before a slight pull back above the $1,700 mark. currently, it is accumulating losses close to the $1,710. The $1,725 mark serves as a temporary barrier. On the same chart, a significant negative trend line is also developing, with resistance located close to $1,725.
The price may increase in direction of the 100 simple moving average if it surpasses the next significant barrier near the $1,740 mark (red, 4-hours).
In the absence of an upward break, the price may continue to decline below $1,700. Near $1,685 is the next significant support, below which the price may continue to decline quickly. In the aforementioned scenario, the price might drop to around $1,650.
In terms of EUR/USD, the pair has begun to recover and has reached 1.0200.
The GBP/USD currency pair also advanced past the 1.2000 barrier level.
Economic Release to Trade Today
UK Consumer Price Index for June 2022 (YoY) is forecasted to increase by +9.3% compared to the previous +9.1%.
The UK Core Consumer Price Index for June 2022 (YoY), is forecasted at +5.8% from +5.9% previous.
Canadian Consumer Price Index for June 2022 (MoM): Forecasted to increase by +2.6% vs. +1.7% in the prior month.
Canadian Consumer Price Index for June 2022 (YoY): forecasted increase of +8.4% vs. +7.7% in the prior month.
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