Price of Gold (XAUUSD) Resolves To The Downside, FOMC Minutes Next
- From the $1,800 resistance region, gold’s price began to decline.
- On the 4-hours chart, it fell below a significant bullish trend line with support at $1,792.
- Before the bulls came, EUR/USD continued to decline below 1.0200.
- The crucial 1.2000 support level was tested by GBP/USD.
Technical Analysis of Gold
In relation to the US dollar, gold’s price increased quickly above the $1,750 resistance level. The resistance levels of $1,760 and $1,780 were overcome by the price.
The XAU/USD 4-hours chart shows that the price even broke the $1,800 mark. There were, however, few gains over $1,800. Before there was a negative adjustment, the price reached a high of $1,807.
The levels of $1,800 and $1,795 were moved down. The upward movement from the $1,680 swing low to the $1,807 high was retraced upward at a 23.6% Fibonacci level, which was breached by the price.
Additionally, it fell below a crucial bullish trend line on the same chart with support at $1,792. On the downside, the $1,768 mark and the 100 simple moving average provide first support (red, 4-hours).
Below the 200 simple moving average (green, 4-hours), which is the next significant support, the price may continue to decline quickly. In the aforementioned scenario, the price may potentially fall to the $1,745 mark.
On the upside, buyers may come into play close to the $1,790 mark. Near the $1,800 mark, there is the next significant barrier. The price may move toward the $1,825 mark if there are any additional gains.
Regarding the EUR/USD pair, losses continued below the 1.0200 level as the price tested the 1.0120 support, which is where the bulls re-emerged.
Economic News to Trade Today
- The UK Core Consumer Price Index for July 2022 (YoY): Forecasted at 5.9% against 5.8% previous.
- The Euro Gross Domestic product Q2 2022 (Preliminary) (QoQ): Forecastedd at 0.7% against 0.7% previous.
- FOMC Meeting Minutes
Author: Amogo Solomon
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