Is gold’s latest recovery over?

JFD Team JFD

XAU/USD traded lower on Wednesday, after it hit resistance at the 1900 zone. Overall the metal continues to trade below the 1910 barrier, which acted as the lower bound of the triangle that contained the price action from August 12^th until September 21^st, and thus, we see decent chances for the bears to take fully charge again soon.

A clear and decisive dip back below 1875, which is near the highs of last Thursday and Friday, may confirm that Monday’s and Tuesday’s recovery was just a corrective rebound and may encourage the bears to target Monday’s low, at around 1848. A break lower would confirm a forthcoming lower low and may set the stage for more declines, perhaps towards the 1815 zone, which provided strong resistance between July 8^th and 17^th.

Shifting attention to our short-term oscillators, we see that the RSI turned down and now looks ready to fall below its 50 line, while the MACD, although above both its zero and trigger lines, shows signs it could turn south as well. Both indicators suggest that the yellow metal may start picking up negative momentum, which supports the notion for another negative leg in the short run.

We will start considering the bullish case only if we see a strong recovery above 1955. Such a move would also take gold above the upper end of the pre-mentioned triangle and may initially target the highs of August 15^th and 16^th, at around 1972. Another break, above 1972, may pave the way towards the peak of September 1^st, near 1991. If the bulls are not willing to stop there either, then we may see them pushing the battle up to the 2015 area, marked as a resistance by the high of August 18^th.

XAU/USD Gold 4-hour chart technical analysis

JFDBANK.com - One-stop Multi-asset Experience for Trading and Investment Services

Author

JFD Team

JFD

EUR/USD holds firm near 1.1850 amid USD weakness

EUR/USD remains strongly bid around 1.1850 in European trading on Monday. The USD/JPY slide-led broad US Dollar weakness helps the pair build on Friday's recovery ahead of the Eurozone Sentix Investor Confidence data for February.

GBP/USD holds medium-term bullish bias above 1.3600

The GBP/USD pair trades on a softer note around 1.3605 during the early European session on Monday. Growing expectation of the Bank of England’s interest-rate cut weighs on the Pound Sterling against the Greenback.

Gold remains supported by China's buying and USD weakness as traders eye US data

Gold struggles to capitalize on its intraday move up and remains below the $5,100 mark heading into the European session amid mixed cues. Data released over the weekend showed that the People's Bank of China extended its buying spree for a 15th month in January. Moreover, dovish US Fed expectations and concerns about the central bank's independence drag the US Dollar lower for the second straight day, providing an additional boost to the non-yielding yellow metal.

Cardano steadies as whale selling caps recovery

Cardano (ADA) steadies at $0.27 at the time of writing on Monday after slipping more than 5% in the previous week. On-chain data indicate a bearish trend, with certain whales offloading ADA. However, the technical outlook suggests bearish momentum is weakening, raising the possibility of a short-term relief rebound if buying interest picks up.

Japan's Takaichi secures historic victory in snap election

In Japan, Prime Minister Sanae Takaichi's coalition secured a supermajority in the lower house, winning 328 out of 465 seats following a rare winter snap election. This provides her with a strong mandate to advance her legislative agenda.

Bitcoin, Ethereum and Ripple consolidate after massive sell-off

Bitcoin, Ethereum, and Ripple prices consolidated on Monday after correcting by nearly 9%, 8%, and 10% in the previous week, respectively. BTC is hovering around $70,000, while ETH and XRP are facing rejection at key levels. Traders should be cautious: despite recent stabilization, upside recovery for these top three cryptocurrencies is capped as the broader trend remains bearish.