#XAUUSD @ 1,825.31 Gold price is facing heat while extending its recovery above $1,828.00 as USD Index has found a cushion. (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)]

• Gold price is facing heat while extending its recovery above $1,828.00 as USD Index has found a cushion.
• The extremely solid US labor market is strengthening the case of policy tightening continuation by the Fed.
• A confluence of Double Bottom formation and Spinning Top near the 38.25 Fibo gives a green signal to a bullish reversal.

The pair currently trades last at 1825.31.

The previous day high was 1833.88 while the previous day low was 1817.44. The daily 38.2% Fib levels comes at 1823.72, expected to provide support. Similarly, the daily 61.8% fib level is at 1827.6, expected to provide resistance.

Gold price (XAU/USD) has sensed barricades while extending its recovery above $1,828.00 in the Asian session. The downside pressure in the precious metal looks confident as the US Dollar Index (DXY) has attempted a recovery after a correction to near 104.10. It looks like the risk-on impulse has retreated and the investors are shifting back to the risk-aversion theme.

S&P500 futures are displaying moderate losses after a positive Thursday. Global equities are prone to sheer volatility as worldwide sticky inflation could be addressed by more rates announcement. According to a Reuters poll of equity analysts, a slight majority of whom expected a correction within three months.

The yields on US government bonds are still struggling to recover after a severe correction. At the time of writing, the 10-year US Treasury Yields were available at around 3.87%.

For further guidance, investors will watch the United States Personal Consumption Expenditure (PCE) Price Index figures. On an annual basis, the economic data is seen higher at 4.3% vs. the former release of 4.4%. The monthly data is expected to escalate by 0.4% against 0.3% released earlier. Price pressures in the US economy have shown resilience after a declining trend led by a recovery in households’ spending and an upbeat labor market.

On Thursday, the US Department of Labor reported a surprise decline in the Initial Jobless Claims (IJC) to 193K from Bloomberg’s estimates of 200K. Meanwhile, Continuing claims that count individuals who have already received unemployment benefits for a week or more, decreased by 37,000 — the biggest drop since December — to 1.65 million in the week ended Feb. 11, as reported by Bloomberg.

No doubt, the labor market is extremely solid considering the declining jobless claims, multi-decade lowest Unemployment Rate, and solid job creation. This bolsters the fact that the Federal Reserve (Fed) cannot pause hiking rates further.

Gold price has formed a Spinning Top candlestick pattern on the daily scale that conveys a reversal due to indecisiveness in the sentiment of market participants after a downside move. The importance of the Spinning Top candlestick formation is meaningful as it has formed near the 38.2% Fibonacci retracement (placed from November 3 low at $1,616.69 to February 2 high at $1.959.71) at $1,829.45.

The Gold price has also formed a Double Bottom chart pattern in which the second leg of the bottom has formed with less-confident, showing signs of a bullish reversal.

Technical Levels: Supports and Resistances

XAUUSD currently trading at 1827.23 at the time of writing. Pair opened at 1823.48 and is trading with a change of 0.21 % .

The pair is trading below its 20 Daily moving average @ 1869.94, below its 50 Daily moving average @ 1864.98 , above its 100 Daily moving average @ 1791.19 and above its 200 Daily moving average @ 1776.19

The previous day high was 1833.88 while the previous day low was 1817.44. The daily 38.2% Fib levels comes at 1823.72, expected to provide support. Similarly, the daily 61.8% fib level is at 1827.6, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1815.99, 1808.49, 1799.55
• Pivot resistance is noted at 1832.43, 1841.37, 1848.87

[/s2If]
Join Our Telegram Group