Price of Gold Increases Gain, $1,800 Stood As Resistance

Key Take-Aways

  • After breaking through the $1,740 resistance, the price of gold started to increase.
  • On the 4-hours chart, it crossed above a crucial negative trend line that served as resistance near $1,755.
  • The crucial 1.0280 resistance area is still proving difficult for EUR/USD to overcome.
  • In July 2022, the US ISM Services PMI could drop from 55.3 to 53.5.

Price Technical Analysis of Gold

From the $1,680 area against the US Dollar, the price of gold began a descent upward movement. The resistance levels of $1,700 and $1,720 were overcome by the price.

The XAU/USD 4-hours chart shows that the price gained after breaking through the $1,740 resistance. A crucial negative trend line that served as resistance near $1,755 was clearly crossed.

In addition, the price surged over the 50% Fibonacci retracement level of the decline from the swing high of $1,879 to the low of $1,680. Even the 100 simple moving average, the 200 simple moving average (green, 4-hours), and the $1,750 barrier were breached by the price.

Near the $1,800 mark, there is the next significant barrier. It is close to the 61.8 percent Fibonacci retracement level of the decline from the swing high of $1,879 to the low of $1,680.

The price may move toward the $1,825 mark if there are any additional gains. On the downside, the $1,765 level and the 100 simple moving average provide first support.

Near $1,750 is the next significant support, below which the price may continue to decline quickly. In the aforementioned scenario, the price might drop to around $1,720.

Looking at EUR/USD, the pair continues to encounter a significant resistance close to 1.0280. Additionally, the GBP/USD pair corrected lower from the 1.2300 region.

Economic News To Trade Today

Germany’s services PMI for July 2022 is predicted to be 49.2 Versus 49.2 previous.

The Euro Zone Services PMI for July 2022 is forecasted at 50.6, versus 50.6 previous.

The UK Services PMI for July 2022 is forecasted at 53.3, versus 5.3 previous.

The US ISM Services PMI for July 2022 is Forecasted at 53.5, versus 55.3 previous.

Author:
Amogo Solomon is a Broker-Dealer/Market Research analyst and writer in ACT Brokers with a background in Computer Science, Data Analytics, and Forex Broker Dealing. He specializes in Forex Dealing, markets Analysis, Currency research, forex fundamental and technical analysis, and Monitoring of Forex trends, Stocks, Equities, Cryptos, and Commodities. He possesses strong technical and analytical skills and is well known for his entertaining and informative analysis of the global economy, fiat currency, commodities, Stocks, Indexes, Futures, and Options markets. He held a Bachelor's degree in Computer Science and Nanodegree in Programming for Data Science Enterprise.

Leave a Reply

Your email address will not be published.