The Recovering Gain Massively, Next is The US ISM Manufacturing Index
- The $1,805 area marked the beginning of an upward correction for gold price.
- In the 4-hours chart, it broke over a significant negative trend line with resistance close to $1,815.
- GBP/USD and EUR/USD began a respectable comeback wave.
- In February 2023, the US ISM Manufacturing Index might rise from 47.4 to 48.0.
Technical Analysis of Gold After breaking the $1,840 support level against the US Dollar, the price of gold started to move downward. Until the bulls showed up, the price fluctuated very near the $1,800 mark
The XAU/USD 4-hours chart shows that the price fell as low as $1,804. It fell below the 200 simple moving average and the 100 simple moving average (red, 4-hours).
Over the $1,815 mark, there was a recent positive correction. In the 4-hour chart, a significant negative trend line with resistance close to $1,815 was broken by the price. The 50% Fib retracement level of the decline from the swing high of $1,845 to the low of $1,804 was tested.
The 200 simple moving average and the $1,830 mark are currently acting as resistance for the price. The biggest barrier lies close to the $1,845 region and, above which the price may start to move upward.
On the downside, a preliminary support is located close to the $1,815 mark. Below the $1,805 mark, gold price may find it difficult to maintain its position above the $1,800 region. This is the next significant support. Given the aforementioned scenario, gold’s price could decline in direction of the $1,780 support.
The EUR/USD pair began a recovery wave from the 1.0535 area, and it may continue to advance toward the 1.0680 resistance.
Economic News To Trade Today
- The US ISM Manufacturing Index for February 2023 is forecasted to be 48.00, up from 47.4 in the previous month.
- The Euro Zone Manufacturing PMI for February 2023: forecast 48.5 versus 48.5 previous.
- The UK Manufacturing PMI for feb 2023: Forecast 48.0 versus 47.4 previous.
Author: Amogo Solomon
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