Technical Analysis – Gold bearish in short-term; remains vulnerable but immediate downside pressure eases for now

XM Research Department XM

Gold has turned increasingly bearish and has shifted out of a range in which it has been trading in since early October. Prices broke below the 1270-1300 range to trade under 1250 since last Thursday.

On the 4-hour time frame, there was a bearish crossover of the 50 and 200-period moving averages. RSI has dipped into bearish territory and is slowly moving out of oversold levels. Gold prices are entering a consolidation phase due to the oversold conditions.

Immediate resistance is at 1250 which is currently being tested and could be quite a challenge to breach. A sustained break off this level could push prices towards the key 1260 area and then to the bottom of the recent range at 1270 with scope to re-enter the medium-term neutral phase.

Near-term support is expected between the 1243.48 low and 1247. Risk is tilted to the downside and there is potential for additional weakness for a move towards the 1235 area which was previously tested as support. From here a decline below 1230 cannot be ruled out.

The multi-month trend is bearish and the market remains vulnerable. But in the near term, congestion is expected to remain just below the 1250 area and above the 4-month low. Price action is soft but downside pressure is muted for now.

Author

XM Research Department

Manned by a powerful team of professionals, along with certified forex instructors, the XM Research and Education Center provides a full range of up-to-date marketing tools essential for profitable trading, including market analys

EUR/USD faces next resistance near 1.1930

EUR/USD has surrendered its earlier intraday advance on Thursday and is now hovering uncomfortably around the 1.1860 region amid modest gains in the US Dolla. Moving forward, markets are exoected to closely follow Friday’s release of US CPI data.

GBP/USD inching closer to 1.36

The Pound Sterling edged higher to 1.3640 on Thursday, recovering from an earlier pullback after stronger-than-expected US jobs data initially weighed on the pair. The Bank of England held rates at 3.75% at its February 4 meeting in a narrow 5-4 vote split, with four members preferring a 25 basis point cut to 3.50%.

Gold falls to near $4,900 as selling pressure intensifies

Gold price faces some selling pressure around $4,910 during the early Asian session on Friday. The yellow metal tumbles over 3.50% on the day, with algorithmic traders appearing to amplify the precious metal’s sudden drop. Traders will closely monitor the release of the US Consumer Price Index inflation report for January, which will be released later on Friday.

Ethereum investors face huge unrealized losses following price slump

US spot Ethereum exchange-traded funds flipped negative again on Wednesday after recording net outflows of $129.1 million, reversing mild inflows seen at the beginning of the week, per SoSoValue data. Fidelity's FETH was responsible for more than half of withdrawals, posting outflows of $67 million.

A tale of two labour markets: Headline strength masks underlying weakness

Undoubtedly, yesterday’s delayed US January jobs report delivered a strong headline – one that surpassed most estimates. However, optimism quickly faded amid sobering benchmark revisions.

Aster Price Forecast: Demand sparks on Binance Wallet partnership for on-chain perpetuals

Aster is up roughly 9% so far on Thursday, hinting at the breakout of a crucial resistance level. Aster partners up with Binance wallet for the second season of the on-chain perpetuals challenge.