Gold Prices Defy Pivotal Technical Resistance, AUD/USD Attempts Bullish Breakout
GOLD PRICE (XAU/USD), AUD/USD FORECAST:
- Gold costs climb and problem technical resistance on the again of falling U.S. yields and U.S. greenback softness
- AUD/USD additionally pushes increased, breaking above its 200-day easy shifting common
- This article appears to be like at key technical ranges to observe on XAU/USD and AUD/USD this week
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GOLD PRICE TECHNICAL ANALYSIS
Gold costs climbed on Monday, buoyed by the drop in U.S. yields and the U.S. greenback’s softness. With latest efficiency in thoughts, XAU/USD has risen greater than 8% since October, firmly eclipsing its 200-day easy shifting common and ascending past the psychological $2,000 degree – two technical alerts which have strengthened the metallic’s constructive bias.
For stronger conviction within the bullish thesis and to validate the potential for additional upward momentum, a transparent and decisive transfer above $2,010/$2,015 is required – a significant resistance zone that has persistently thwarted advances because the starting of the 12 months. While clearing this hurdle would possibly pose a problem for bulls, a breakout might catalyze a rally in direction of $2,060, adopted by $2,085, May’s excessive.
In the occasion that gold will get rejected to the draw back from its present place, the asset would possibly pattern in direction of help spanning from $1,980 to $1,975. Prices might doubtlessly stabilize on this space on a bearish reversal, however a push under this flooring might result in a retreat in direction of the 200-day easy shifting common located across the $1,950 mark. Beneath this threshold, consideration would possibly refocus on $1,937.
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GOLD PRICE TECHNICAL CHART
Gold Price Chart Created Using TradingView
AUD/USD TECHNICAL ANALYSIS
AUD/USD trekked upwards at the beginning of the brand new week, climbing above its 200-day easy shifting common and coming inside a whisker of taking out technical resistance positioned within the 0.6600-0.6620 band. With the RSI indicator approaching overbought territory, the latest rally might quickly run out of steam, however a transfer above 0.6600-0.6620 might breathe new life into the pair and reinvigorate the bulls, propelling costs in direction of trendline resistance at 0.6670. On additional power, we might even see a transfer in direction of 0.6815.
On the opposite hand, if market sentiment shifts in favor of sellers and AUD/USD takes a flip to the draw back, major help looms at 0.6525, however additional losses may very well be in retailer on a push under this threshold, with the subsequent draw back goal comparable to the 100-day easy shifting common, adopted by 0.6460. It is of utmost significance for the bulls to robustly defend this flooring; any failure to take action might catalyze a pullback in direction of 0.6395.
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| Change in | Longs | Shorts | OI |
| Daily | 2% | 6% | 4% |
| Weekly | -7% | 3% | -3% |
