FOREXCOM:XAUUSD is testing local levels in the correction phase and heading towards descending triangle resistance. There are several strong levels crossing in the area of 2035-2037. What to expect from the price?
The price is in the correction phase testing the symmetrical triangle resistance as well as the previously broken ascending support line. Technically, gold is in a stalemate situation, as well as in the selling zone. The crossing area of strong levels is at 2035-2040. Most likely, before a possible further fall, the price may test 2035-2040 with a false breakout. But, there is news ahead and we should not forget about their nature of unpredictability.
Resistance levels: 2035, 2037, 2040 Support levels: 2030, 2020, 2016
Fundamentally, gold is weaker against the dollar. Technically, we have no trend, only flat. There is news ahead and on the background of the news, I expect that the price may continue to fall after the correction phase. Targets remain the same
Today is quite a busy day for news. Yesterday, during the FOMC meeting it was said: The Fed representatives expressed caution about starting to cut rates too soon. - This once again confirms the fact that inflation remains high, rates will not be cut before the summer and in general this is a scenario for the strengthening of the dollar index.
Today we should pay attention to: 13:30 GMT - Initial Jobless Claims 14:45 GMT - SP500 PMI 20:15 GMT - FOMC Member Harker Speaks 21:30 GMT - Fed's Balance Sheet 22:00 GMT - FOMC Member Kashkari Speaks
Focus on Initial Jobless Claims: This is the number of people who applied for unemployment benefits for the first time in the last week. This is the earliest US economic data.
Analysts expect the data to remain roughly flat, with a slight +3K increase. But, the previous two periods the data was lower than expected, which was positive for the overall situation. It is highly probable that this time we may see data below the expected 217K. If this happens, the dollar will continue to rise, which may have a positive impact on the market.
Fundamental background for gold is still negative We should expect further price decline
Trade closed: target reached
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The price reaches an important 2020 level Intermediate target reached
A retest after a small pullback could break 2020
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The 2020 level plays a key role Support continues to be retested for a breakout
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After Thursday's news, the price reaches our 2016 target.
But, today a rebound is formed and further strengthening of the price, associated with geopolitical nuances: another crisis on the background of sanctions imposed on some CIS and Asian countries by the US, UK, European countries and Canada