EUR/USD and XAU/USD weekly analysis

Brian Wang Independent Analyst

After Omicron triggered market volatility last Friday, investors expect that the pace of the Fed's rate hike may be delayed. The U.S. will release its November nonfarm payrolls data this Friday, so let us keep an eye on employment and inflation data. If this week's payroll growth data is solid, while the labour market recovers well, the Fed is still likely to taper its bond purchases at the original pace.

Gold

Gold closed last week at $1,792, above the essential 60-period weekly EMA of $1,785. Back to the 4-hour chart, the bulls tried to test the 60 EMA $1,817 on Friday, but the price was stopped here and fell back. During today's Asian session, the support level of $1,780 blocked the shorts for the third time.

If the bulls want to push the price higher to bring Gold back to an uptrend, the initial upside limit will likely come from around $1,810-$1,811. When prices recover the $1,815 high, the next target for the bulls will be the 1826-1838 resistance section. Once the shorts succeed in getting the price below the 1$1,769-$1,780 area, the next defensive area for the bulls will be around $1,750.

EUR/USD

EURUSD was stopped at the 60-period EMA and is currently below 1.1300. The primary support level below is 1.1270. After the price falls below 1.1270, the next target for sellers will be the 1.1230-1.1250 section. However, once the buyers are strong enough to get the price successfully overstepping the 60-period SMA, sellers may counter at the next resistance barrier at 1.1350-1.1370, which is also the location of the 100-period EMA.

Author

Brian Wang

Independent Analyst

Based in Melbourne, Brian joined Capital.com in 2022 as a Dealer.

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