Key Highlights
- Gold price started a decent upward move from the $1,676 low.
- A major bearish trend line is forming with resistance near $1,760 on the 4-hours chart.
- EUR/USD is approaching the 1.2000 resistance, GBP/USD could attempt to surpass 1.4000.
- The US Initial Jobless Claims in the week ending March 13, 2021 could decline from 712K to 700K.
Gold Price Technical Analysis
After a steady decline, gold price found support near the $1,675 zone against the US Dollar. The price traded as low as $1,676 on TitanFX and it recently started a decent upward move.
The 4-hours chart of XAU/USD indicates that the price corrected nicely above the $1,700 resistance zone. It broke the 38.2% Fib retracement level of the downward move from the $1,815 swing high to $1,676 low.
It is now trading above the $1.740 resistance and the 100 simple moving average (red, 4-hours). Besides, it is testing the 50% Fib retracement level of the downward move from the $1,815 swing high to $1,676 low.
There is also a major bearish trend line forming with resistance near $1,760 on the same chart. The main resistance is near the $1,765 zone (the last breakdown zone) and the 200 simple moving average (green, 4-hours).
To move into a positive zone, gold price must surpass the trend line resistance and then settle above $1,765. Conversely, it could fail to continue higher and it might start a fresh decline below the $1,740 support. The next major support is near the $1,720, followed by $1,712.
Looking at EUR/USD and GBP/USD, both pairs are recovering and approaching major hurdles near 1.2000 and 1.4000 respectively.
Economic Releases to Watch Today
- BoC Interest Rate Decision – Forecast 0.1%, versus 0.1% previous.
- US Initial Jobless Claims – Forecast 700K, versus 712K previous.
- Canada’s ADP Employment Change for Feb 2021 – Forecast 15K, versus -231.2K previous.
