The Recovering Gain Massively, Next is The US ISM Manufacturing Index

Key Take-Aways

  • 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.
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.