#XAUUSD @ 1,940.86 Gold price has dropped after struggling above $1,940.00 as the US Dollar Index is possessing immense strength. (Pivot Orderbook analysis)
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- Gold price has dropped after struggling above $1,940.00 as the US Dollar Index is possessing immense strength.
- Fed Collins cited that the Fed “may be at or near” the time to pause interest rate increases.
- Gold price has turned imbalance after a breakdown of the consolidation formed in a range of $1,952-1,985.
The pair currently trades last at 1940.86.
The previous day high was 1964.82 while the previous day low was 1938.91. The daily 38.2% Fib levels comes at 1948.81, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1954.92, expected to provide resistance.
Gold price (XAU/USD) has extended its downside further below the immediate support of $1,940.00 in the Asian session. Earlier, the precious metal displayed a vertical downfall after slipping below the $1,952.00 cushion as the United States economy is approaching a default situation amid divergence in views over the budget among the White House and Republican delegates.
S&P500 futures have posted decent losses in the Asian session after a positive Thursday. Market sentiment is turning negative as investors are worried that the US treasury could announce a default in less than one week if negotiations between US President Joe Biden and House of Representatives Kevin McCarthy keep going like this.
The US Dollar Index (DXY) has rebounded firmly to near 104.28 after a mild correction. The USD Index is having immense strength despite expectations of a pause in the policy-tightening spell by the Federal Reserve (Fed) in June. Boston Fed Bank President Susan Collins said on Thursday that the Fed “may be at or near” the time to pause interest rate increases, as reported by Reuters. She further added, “While inflation is still too high, there are some promising signs of moderation,”
On Friday, US Durable Goods Orders data will be keenly watched. According to the consensus, Aril Durable Goods Orders data is seen contracting by 1.0% against an expansion of 3.2%. A decline in durable goods orders would weigh heavily on the core Consumer Price Index (CPI) which has shown severe persistence.
Gold price has turned imbalance after a breakdown of the consolidation formed in a range of $1,952-1,985 on the daily scale. The precious metal has shifted into bearish territory and is expected to find support near May 13 high at $1,914.67.
The 10-period Exponential Moving Average (EMA) at $1,968.43 is acting as a barricade for the Gold bulls.
The Relative Strength Index (RSI) (14) has slipped below 40.00, showing no signs of divergence and an absence of evidence of oversold situation supports weakness ahead.
Technical Levels: Supports and Resistances
XAUUSD currently trading at 1939.0 at the time of writing. Pair opened at 1941.37 and is trading with a change of -0.12 % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 1939.00 |
| 1 | Today Daily Change | -2.37 |
| 2 | Today Daily Change % | -0.12 |
| 3 | Today daily open | 1941.37 |
The pair is trading below its 20 Daily moving average @ 1998.76, below its 50 Daily moving average @ 1992.47 , above its 100 Daily moving average @ 1933.96 and above its 200 Daily moving average @ 1829.49
| Trends | Trends.1 | |
|---|---|---|
| 0 | Daily SMA20 | 1998.76 |
| 1 | Daily SMA50 | 1992.47 |
| 2 | Daily SMA100 | 1933.96 |
| 3 | Daily SMA200 | 1829.49 |
The previous day high was 1964.82 while the previous day low was 1938.91. The daily 38.2% Fib levels comes at 1948.81, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1954.92, expected to provide resistance.
Note the levels of interest below:
- Pivot support is noted at 1931.91, 1922.46, 1906.0
- Pivot resistance is noted at 1957.82, 1974.28, 1983.73
| Levels | Levels.1 |
|---|---|
| Previous Daily High | 1964.82 |
| Previous Daily Low | 1938.91 |
| Previous Weekly High | 2022.18 |
| Previous Weekly Low | 1952.01 |
| Previous Monthly High | 2048.75 |
| Previous Monthly Low | 1949.83 |
| Daily Fibonacci 38.2% | 1948.81 |
| Daily Fibonacci 61.8% | 1954.92 |
| Daily Pivot Point S1 | 1931.91 |
| Daily Pivot Point S2 | 1922.46 |
| Daily Pivot Point S3 | 1906.00 |
| Daily Pivot Point R1 | 1957.82 |
| Daily Pivot Point R2 | 1974.28 |
| Daily Pivot Point R3 | 1983.73 |
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