Price of Gold (XAUUSD) Resolves To The Downside, FOMC Minutes Next

Key Take-Aways

  • 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 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.

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