Key Highlights
- Gold rallied further and spiked above the $2,350 resistance level.
- A connecting bullish trend line is forming with support at $2,320 on the 4-hour chart.
- EUR/USD is facing a major hurdle near the 1.0880 resistance.
- Bitcoin price regained strength for a move above the $71,000 resistance.
Gold Price Technical Analysis
Gold prices started a fresh increase from the $2,200 support against the US Dollar. The bulls cleared the $2,250 resistance to start a strong rally.
The 4-hour chart of XAU/USD indicates that the price settled above the $2,250 level, the 100 Simple Moving Average (red, 4 hours), and the 200 Simple Moving Average (green, 4 hours).
The bulls were able to pump the price above the $2,300 and $2,320 levels. Finally, the price spiked above the $2,350 level. A new high was formed at $2,354 and the price is now consolidating gains.
There was a move below the $2,330 level. There was a spike toward the 38.2% Fib retracement level of the upward move from the $2,267 swing low to the $2,354 high. The first major support sits at $2,310. There is also a connecting bullish trend line forming with support at $2,320 on the same chart.
The trend line is close to the 50% Fib retracement level of the upward move from the $2,267 swing low to the $2,354 high. Any more losses might call for a move toward the $2,280 level.
On the upside, the price is facing resistance near the $2,345 level. The main resistance is now forming near $2,355, above which the price could accelerate higher toward $2,380.
Looking at Bitcoin, there was a strong upward move above the $70,000 zone and there are chances of more upsides.
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