Key Highlights
- Gold price started a fresh increase above the $1,900 resistance.
- A key bullish trend line is forming with support near $1,875 on the 4-hours chart.
- EUR/USD is consolidating gains above the 1.0780 support.
- GBP/USD might continue to rise above the 1.2300 resistance zone.
Gold Price Technical Analysis
Gold price formed a base above the $1,850 level against the US Dollar. The price started a steady increase above the $1,870 and $1,880 levels.
The 4-hours chart of XAU/USD indicates that the price gained pace above the $1,892 resistance zone. The price even moved above the $1,900 level and settled well above the 100 simple moving average (red, 4-hours) plus the 200 simple moving average (green, 4-hours).
The price tested the $1,930 and started a consolidation phase. On the upside, the price might face sellers near the $1,925 level.
The next major resistance is near the $1,930 level. Any more gains might send the price towards the $1,950 resistance level, above which gold price might visit the $2,000 resistance.
On the downside, an initial support is near the $1,900 level. The next major support is near the $1,880 level. There is also a key bullish trend line forming with support near $1,875 on the same chart.
The main support is near $1,865, below which gold price might struggle to stay above the $1,850 zone. In the stated case, gold price could slide towards the $1,820 support.
Looking at EUR/USD, the pair could attempt a fresh increase if it clears the 1.092 resistance zone in the coming sessions.
Economic Releases to Watch Today
- UK Consumer Price Index for Dec 2022 (YoY) – Forecast +10.6%, versus +10.7% previous.
- UK Core Consumer Price Index for Dec 2022 (YoY) – Forecast +6.6%, versus +6.3% previous.
- Euro Zone CPI for Dec 2022 (YoY) – Forecast +9.2%, versus +9.2% previous.
- Euro Zone CPI for Dec 2022 (MoM) – Forecast -0.3%, versus -0.3% previous.
- US Industrial Production for Dec 2022 (MoM) – Forecast -0.1%, versus -0.2% previous.
