EUR/AUD looks down
EUR/AUD rose to 1…
Gold fell below $2 000 first time in a week
Information is not investment advice
XAU/USD is decreasing for the third day in a row. What are the reasons?
What happened?
It all started from Friday’s NFP report. US non-farm payrolls and unemployment rate came out better than analysts expected. As a result, the US dollar surged, while gold dipped down. After the yellow metal’s value lost nearly $80, analysts became cautious, that it might be something bigger than just a short correction. Indeed, when one red candle followed another one, the market participants wouldn’t like to miss great opportunities to take profit. It leaded to the massive gold sell-off.
Moreover, the current risk-on sentiment added headwinds to XAU/USD. Trump launched an executive order of $400 per week of unemployment benefits. However, disputes over the whole stimulus package between Democrats and Republicans continue. Nevertheless, gold bears shrugged off those disputes and focused more on the overall risk-on sentiment.
Technical tips
On the 4-hour chart, we can see that the gold price has a pullback towards the $2 000 level after breaking it out. The broken support switched to the resistance. As a rule, the price bounces off the resistance and continues falling down. It should meet the next support at the $1 970 level, which it failed to cross during the period of the end of July – the beginning of August. If it manages to break down this strong support, it will open doors towards the next support at the low of July 30 at $1 950. On the flip side, if gold jumps above $2 000, it may surge to the resistance line at $2 035, which it has touched several times already. Follow further news on gold!
anonymous
Similar
Cable climbs to fresh two-month high
US stock markets are set to open mixed as the post-Pfizer rally is reassessed, but cyclicals are still clearly outperforming the growth and momentum names that have notched the biggest gains during the pandemic.
AUD/USD is trying to recover
Biden maintains the lead in crucial Pennsylvania. EUR/USD little changed since this morning.
Popular
All attention to Biden's inauguration
Joe Biden will take the post of president of the USA on the morning of 20 January 2021. Trump is going to skip the inauguration. What will be the market reaction? Let’s find out!
Dollar retreats from highs ahead of Yellen's testimony
Asian equity markets mostly rallied with risk appetite spurred as trade picked up from Monday’s holiday.
USD/JPY: bouncing downwards
Look at the H1 chart for USD/JPY - is it not a perfect example of a reversal in the resistance zone?
Choose your payment system
