Key Highlights
- Gold price gained pace above the $2,000 resistance.
- It broke a major contracting triangle with resistance near $1,985 on the 4-hours chart.
- EUR/USD started a consolidation phase above the 1.0880 zone.
- USD/JPY is slowly moving lower toward the 129.50 support.
Gold Price Technical Analysis
Gold price remained well-bid above the $1,950 support zone against the US Dollar. The price started a fresh increase above the $1,980 resistance.
The 4-hours chart of XAU/USD indicates that the price cleared many hurdles near the $1,980 and $1,988 levels. It even settled above the 100 Simple Moving Average (red, 4 hours), and the 200 Simple Moving Average (green, 4 hours).
Besides, the price broke a major contracting triangle with resistance near $1,985 on the same chart. Finally, there was a clear move above the $2,000 resistance zone.
It tested the $2,030 zone before the bears appeared. Immediate resistance near the $2,035 level. The next major resistance is near the $2,050 level. Any more gains might send the price toward the $2,065 level.
On the downside, initial support is near the $2,000 level. The next major support is near the $1,980 level, below which there is a risk of a move toward the $1,965 level.
The next major support is near the $1,950 level, below which gold price might struggle to stay above the $1,932 zone. In the stated case, gold price could slide towards the $1,910 support.
Looking at EUR/USD, the pair failed to test the 1.1000 resistance zone and recently started a consolidation phase.
Economic Releases to Watch Today
- US Initial Jobless Claims – Forecast 200K, versus 198K previous.
- Canada’s employment Change for March 2023 – Forecast 12K, versus 21.8K previous.
- Canada’s Unemployment Rate April 2023 – Forecast 5.1%, versus 5.0% previous.
