#XAUUSD @ 1630.15 Gold Price Forecast: aims establishment above $1,630 as DXY skids, US data eyed (Pivot Orderbook analysis)

…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for PREMIUM VERSION HERE to read full post below containing analysis. In case of any error or you think you are not able to read the full post below, please email us at support#nehcap.com [lwa][/s2If] [s2If current_user_can(access_s2member_level4)]

The pair currently trades last at 1630.15.

The previous day high was 1649.83 while the previous day low was 1621.16. The daily 38.2% Fib levels comes at 1632.11, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1638.88, expected to provide resistance.

Gold price (XAU/USD) has extended its gains to near $1,630.00 after rebounding from $1,621.14 on Monday. The precious metal is eyeing an establishment above $,1630.00 as the US dollar index (DXY) is displaying a vulnerable performance right from the opening tick.

The DXY is facing signs of exhaustion amid lower consensus for the US Durable Goods Orders data. As per the consensus, investors will find a decline in the economic data by 1.1% against a decline of 0.1% recorded in precious reading. Thanks to the soaring core Consumer Price Index (CPI) and accelerating interest rates, which have trimmed the demand for durable goods. As the Federal Reserve (Fed) has pushed interest rates to 3-3.75%, households will face higher interest obligations. Therefore, individuals are preferring to postpone the demand rather than liabiling themselves for higher payouts. Also, a higher inflation rate has trimmed the confidence of consumers broadly.

Apart from that, the speech from Fed chair Jerome Powell will also remain in focus, which is due on Wednesday. Fed Powell will provide the roadmap for hiking interest rates for the remaining 2022.

Gold prices have bounced back sharply from $1,621.14 after a negative divergence formation on an hourly scale. A loss in downside momentum was observed when the precious metal printed a lower low while the momentum oscillator Relative Strength Index (RSI) (14) made a higher low.

The asset has crossed the 20-period Exponential Moving Average (EMA) at $1,629.43 and is oscillating the 50-EMA around $1,632.35. The horizontal resistance is placed from Monday’s high at $1,649.83.

Technical Levels: Supports and Resistances

XAUUSD currently trading at 1629.27 at the time of writing. Pair opened at 1622.43 and is trading with a change of 0.42 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 1690.98, 50 SMA 1729.86, 100 SMA @ 1772.75 and 200 SMA @ 1827.51.

The previous day high was 1649.83 while the previous day low was 1621.16. The daily 38.2% Fib levels comes at 1632.11, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1638.88, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1612.45, 1602.47, 1583.78
• Pivot resistance is noted at 1641.12, 1659.81, 1669.79

[/s2If]
Join Our Telegram Group