|

XAG/USD faces rejection at 0.5 arc – Potential pullback to 4,119 before rebound toward 4,167

XAU/USD: Arc cycle analysis™

XAUUSD

Overview: Based on Arc Cycle Analysis applied to the 2h chart, Gold Spot / U.S. Dollar is interacting with the 0.5 Resistance Arc within the current Arc Cycle. Bullish momentum has faded near this boundary, indicating that the upper Arc continues to cap upside expansion in the near term.

Chart

Market outlook

The 0.5 Arc continues to act as a resistance boundary, capping upside expansion. Bullish attempts have stalled beneath the Resistance Arc, indicating that the resistance remains intact and favoring a near-term pullback toward 4,119, close to the 0.382 Support Arc.

If price holds at 4,119, a rebound toward the 0.5 Arc at 4,167 becomes the preferred scenario. Conversely, a sustained 2h close below 4,077 would invalidate this scenario and open the path toward the next Support Arc at 0.236.

Author

Mohamad Gharib

Mohamad Gharib

Independent Analyst

Mohamad Gharib is a Financial Markets Analyst and Quantitative Researcher with more than 18 years of experience in financial markets, including 15 years as an FX Quant Trader.

More from Mohamad Gharib
Share:

Editor's Picks

AUD/USD holds firm near 0.7000 after Chinese inflation, trade data

AUD/USD stays firm near 0.7000 in Wednesday’s Asian session, picking up some bids after China's mixed inflation and upbeat trade data. CPI rose less than expected in September, while PPI inflation picked up. Meanwhile, the Chinese trade surplus unexpectedly widened in September. The pair remains underpinned by a broadly subdued US Dollar, despite the Middle East escalation, as focus remains on US CPI data.

USD/JPY consolidates near 158.50; looks to US CPI for fresh impetus

USD/JPY stays range-bound near 158.50 in the Asian session on Wednesday, with looming intervention risks supporting the Japanese Yen and capping upside amid a softer US Dollar. However, geopolitical uncertainties act as a tailwind for the safe-haven USD and the pair. Traders also seem hesitant ahead of the release of the latest US inflation figures.

Gold consolidates above $4,150 as softer USD lends support ahead of US CPI report

Gold steadies above $4,150 during the Asian session on Wednesday, awaiting the release of the latest US inflation figures before the next leg of a directional move. The US Consumer Price Index is due for release later today, followed by the Producer Price Index (PPI) on Thursday. Moreover, US Federal Reserve Chair Kevin Warsh's speech at the annual meetings of the IMF and World Bank in Bangkok on Friday will be scrutinized for more cues about the future policy path.

Bitcoin eyes $85,000; ETH holds support, XRP stabilizes
Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) show signs of recovery on Wednesday as buyers try to regain control after their recent market weakness. BTC extends its rebound toward the $85,000 resistance, while ETH and XRP find support around key levels.
US CPI in focus ahead of October FOMC Meeting
In the US, the most important data release of the week will be the September CPI, released this afternoon. We forecast headline inflation at 0.5% m/m SA, 3.6% y/y (prior: 0.6% m/m, 3.4% y/y) and core inflation at 0.2% m/m SA, 2.5% y/y (prior: 0.3% m/m, 2.4% y/y), with energy prices being the main driver of the expected pickup in headline inflation.
Has Bitcoin really escaped the macro forces it was built to fight?
Over 17 years ago, Satoshi Nakamoto designed Bitcoin (BTC) on the back of a global financial crisis as an alternative to the global monetary system outside the control of central banks, governments and traditional intermediaries. This raises a key question: has Bitcoin really become independent of the macroeconomic forces it was built to challenge?