Key Highlights
- Gold price started a downside correction from the $2,070 high.
- It traded below a major bullish trend line with support near $1,950 on the 4-hours chart.
- EUR/USD must clear 1.1080 for a fresh increase, and GBP/USD is facing hurdle at 1.3150.
- The BoE Interest Rate Decision is scheduled today (forecast 0.75%, versus 0.50% previous).
Gold Price Technical Analysis
Gold price rallied to $2,070 before it faced sellers against the US Dollar. The price started a downside correction and traded below the $2,000 support.
The 4-hours chart of XAU/USD indicates that the price failed to stay above the $1,980 and $1,950 support levels. There was also a break below a major bullish trend line with support near $1,950.
The price gained bearish momentum below the 50% Fib retracement level of the key upward move from the $1,878 swing low to $2,070 high. The price even traded below the $1,932 support level and the 100 simple moving average (red, 4-hours).
It struggled below the 76.4% Fib retracement level of the key upward move from the $1,878 swing low to $2,070 high. The next major support is near the $1,880 level and the 200 simple moving average (green, 4-hours).
If there is a downside break and close below $1,880, the price might decline towards the $1,835 support. On the upside, the price might face resistance near $1,940.
The next key resistance could be $1,950, above which the bulls might aim a test of the $1,980 resistance zone or even $2,000.
Looking at EUR/USD, the pair could attempt to clear the 1.1050 and 1.1080 resistance levels. Besides, GBP/USD could face a strong resistance near 1.3150.
Economic Releases to Watch Today
- BoE Interest Rate Decision – Forecast 0.75%, versus 0.50% previous.
- US Initial Jobless Claims – Forecast 220K, versus 227K previous.
- US Industrial Production March 2022 (MoM) – Forecast 0.5%, versus 1.4% previous.
