Key Highlights
- Gold price rallied recently above the $1,500 resistance against the US Dollar.
- A major bullish trend line is forming with support near $1,498 on the 4-hours chart of XAU/USD.
- EUR/USD and GBP/USD are showing positive signs above 1.1150 and 1.3120 respectively.
- The US Initial Jobless Claims for the week ending Dec 28, 2019 could rise from 222K to 227K.
Gold Price Technical Analysis
In the past few days, gold price gained a strong bullish momentum above the $1,480 zone against the US Dollar. The bulls were able to push the price above the $1,500 resistance.
The 4-hours chart of XAU/USD indicates that the price settled nicely above the $1,500 pivot level, the 100 simple moving average (4-hours, red), and the 200 simple moving average (4-hours, green).
It opened the doors for more gains and the price rallied towards the $1,525 resistance. A high is formed near $1,525 and the price is currently correcting lower.
An initial support is near the $1,512 and $1,510 levels. Besides, the 23.6% Fib retracement level of the upward move from the $1,470 low to $1,525 high is also near the $1,512 level.
The main support is seen near the $1,500 level. More importantly, there is a major bullish trend line forming with support near $1,498 on the 4-hours chart of XAU/USD.
The 50% Fib retracement level of the upward move from the $1,470 low to $1,525 high is also near the $1,497 level.
Therefore, dips remain well supported in gold price and the bulls could eye more gains above $1,525 and $1,530 in the near term.
Looking at EUR/USD, the pair is trading nicely above the 1.1150 support, but facing hurdles above 1.1220. Besides, GBP/USD recovered above 1.3200 and it might correct lower in the short term.
Economic Releases to Watch Today
- Germany’s Manufacturing PMI for Dec 2019 – Forecast 43.4, versus 43.4 previous.
- Euro Zone Manufacturing PMI Dec 2019 – Forecast 45.9, versus 45.9 previous.
- UK Manufacturing PMI for Dec 2019 – Forecast 47.6, versus 47.4 previous.
- US Manufacturing PMI for Dec 2019 – Forecast 52.5, versus 52.5 previous.
- US Initial Jobless Claims – Forecast 227K, versus 222K previous.
