Gold Price Could Resume Upside, This Support Is The Key

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Key Highlights

Gold started a downside correction from the $2,380 zone.
A key bearish trend line is forming with resistance at $2,370 on the 4-hour chart.
Oil prices are showing bearish signs below $80.00.
Bitcoin price is still consolidating above the $60,000 support zone.

Gold Price Technical Analysis

Gold prices started a fresh increase above the $2,335 resistance against the US Dollar. It traded above the $2,350 zone before the bears appeared.

The 4-hour chart of XAU/USD indicates that the price traded as high as $2,378 and settled above the 100 Simple Moving Average (red, 4 hours) and the 200 Simple Moving Average (green, 4 hours).

Recently, there was a downside correction from the $2,378 level and the price declined below $2,355. The price dipped below the 23.6% Fib retracement level of the upward move from the $2,277 swing low to the $2,378 high.

On the downside, the 100 Simple Moving Average (red, 4 hours) is the key at $2,328. It is close to the 50% Fib retracement level of the upward move from the $2,277 swing low to the $2,378 high.

The next support sits at the 200 Simple Moving Average (green, 4 hours) and $2,315. A downside break below the $2,315 support might call for more downsides. The next major support is near the $2,280 level. Any more losses might send Gold prices toward $2,265.

On the upside, immediate resistance is at $2,355. The first major resistance is now forming near a key bearish trend line at $2,375, above which the price could accelerate higher toward $2,395.

Looking at Bitcoin, the bulls are still active above the $60,000 support and they might aim for a steady increase in the near term.

Economic Releases to Watch Today

UK Claimant Count Change for April 2024 – Forecast 13.9K, versus 10.9K previous.
UK ILO Unemployment Rate Feb 2024 (3M) – Forecast 4.3%, versus 4.2% previous.
US Producer Price Index for April 2024 (YoY) – Forecast +2.2%, versus +2.1% previous.



This article was originally published by a www.actionforex.com

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