#XAUUSD @ 1,848.03 Gold price has picked up demand near $1,850.00 amid an improvement in investors’ risk appetite. (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 has picked up demand near $1,850.00 amid an improvement in investors’ risk appetite.
• Fed Powell might remain neutral in his testimony on the interest rate guidance.
• Gold price is testing the breakout of the Inverted H&S chart pattern.

The pair currently trades last at 1848.03.

The previous day high was 1858.35 while the previous day low was 1845.18. The daily 38.2% Fib levels comes at 1850.21, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1853.32, expected to provide resistance.

Gold price (XAU/USD) has shown a recovery move after a correction to near $1,844.00 in the Asian session. The precious metal has been supported by the improved risk appetite of the market participants. The US Dollar Index (DXY) looks vulnerable above 104.20 as the risk aversion theme is losing its grip.

S&P500 futures are adding some gains after a flat Monday. The return delivered on 10-year US Treasury yields has dropped below 3.97%. A sheer volatility is expected ahead as Federal Reserve (Fed) chair Jerome Powell will testify before Congress on Tuesday and Wednesday.

MUFG said “It doesn’t expect Fed Chair Jerome Powell to endorse that scale of further tightening” when the Fed chief takes to Capitol Hill to deliver his semi-annual testimony before Congress.

Analysts further added that Fed Powell is more likely to “wait to assess further data in the coming months to see if the strength in activity and inflation is sustained before strongly committing to more rate hikes.”

On the economic data front, United States Automatic Data Processing (ADP) Employment Change will remain in the spotlight. According to the estimates, the US economy added fresh 195K jobs in February, lower than the prior release of 105K. A higher-than-anticipated payrolls addition will bolster the expectations of one more 25 basis points (bps) interest rate hike by the Fed.

Gold price is testing the strength of the Inverted Head and Shoulder chart pattern breakout on an hourly scale. The precious metal is auctioning near the neckline plotted from February high at $1847.00. An Inverted H&S pattern demonstrates a prolonged consolidation and a breakout of the same result in a bullish reversal.

The 50-period Exponential Moving Average (EMA) at $1,847.84 is providing support to the Gold bulls.

The Relative Strength Index (RSI) (14) has gauged cushion around 40.00. A reversal can be spotted at this level.

Technical Levels: Supports and Resistances

XAUUSD currently trading at 1847.98 at the time of writing. Pair opened at 1846.69 and is trading with a change of 0.07 % .

The pair is trading above its 20 Daily moving average @ 1842.61, below its 50 Daily moving average @ 1869.61 , above its 100 Daily moving average @ 1802.84 and above its 200 Daily moving average @ 1775.44

The previous day high was 1858.35 while the previous day low was 1845.18. The daily 38.2% Fib levels comes at 1850.21, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1853.32, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1841.8, 1836.9, 1828.63
• Pivot resistance is noted at 1854.97, 1863.24, 1868.14

[/s2If]
Join Our Telegram Group