Key Highlights
- Gold price rallied above the $1,880 and $1,900 resistance levels.
- A key bullish trend line is forming with support near $1,875 on the 4-hours chart.
- EUR/USD is still struggling to clear the 1.1400 resistance zone.
- GBP/USD corrected lower after it was rejected near 1.3640.
Gold Price Technical Analysis
Gold price formed a base above the $1,780 level and started a fresh increase against the US Dollar. The price broke the $1,800 and $1,820 resistance levels to move into a positive zone.
The 4-hours chart of XAU/USD indicates that the price was able to settle above the $1,880 resistance, the 100 simple moving average (red, 4-hours) and the 200 simple moving average (green, 4-hours).
It even climbed above the $1,900 level. A high is formed near $1,915 and the price is now consolidating gains. On the upside, the bulls are facing a major hurdle near $1,915 and $1,920. A close above $1,920 might set the pace for a move to $1,950.
If not, the price might correct lower and trade below the $1,885 level. The next major support is near $1,875 and a key bullish trend line on the same chart. Any more losses might send the price towards $1,850.
Fundamentally, the US Manufacturing Purchasing Managers Index (PMI) for Feb 2022 (Prelim) was released yesterday by the Markit Economics. The market was looking for a rise from 55.5 to 56.0.
The actual result was positive, as the US Manufacturing Purchasing Managers Index (PMI) increased from 55.5 to 57.5. Besides, the US Services PMI increased from 51.2 to 56.7.
Looking at EUR/USD, the pair is still facing a strong resistance near 1.1380 and 1.1400. Besides, GBP/USD reacted to the downside after the bears protected the 1.3640 resistance.
Economic Releases to Watch Today
- Germany’s GfK Consumer Confidence for March 2022 – Forecast -6.3, versus -6.7 previous.
