XAU/USD Outlook: Bears look for extension below $1459 pivot as thick daily cloud weighs

Slobodan Drvenica Windsor Brokers

GOLD

Spot gold bounced from new five-week low, posted after 1.5% fall previous day, but recovery was so far limited and stalled at $1472, maintaining firm bearish tone.
The yellow metal was hurt by fresh optimism as US and China came close to get the first phase of their trade deal done, that boosted risk appetite.
Thursday's fall came tick away from key support at $1459 (1 Oct low), loss of which would signal an end of $1459/$1519 consolidative phase and risk further weakness.
Break of $1459 pivot would risk test of key Fibo support at $1445 (38.2% of $1266/$1557 bull-leg).
Daily techs are in bearish setup, with gold being on track for the biggest weekly loss in two years that adds to negative outlook.
However, oversold daily stochastic warns that the price may show further hesitation to break lower and hold in extended consolidation.
Broken 100DMA ($1476) and daily cloud base ($1478) is expected to limit upticks and keep bears in play.

Res: 1472; 1476; 1478; 1482
Sup: 1465; 1459; 1453; 1445

Interested in XAU/USD technicals? Check out the key levels

1. R3 1517.48
2. R2 1504.84
3. R1 1486.41
PP 1473.78
1. S1 1455.35
2. S2 1442.71
3. S3 1424.28

Author

Slobodan Drvenica

Windsor Brokers

Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.

EUR/USD onsolidates around mid-1.1800s as traders keenly await FOMC Minutes

The EUR/USD pair struggles to capitalize on the previous day's goodish rebound from the 1.1800 neighborhood, or a one-and-a-half-week low, and consolidates in a narrow band during the Asian session on Wednesday. Spot prices currently trade just below mid-1.1800s, nearly unchanged for the day.

GBP/USD bounces off lows, retargets 1.3550

After bottoming out just below the 1.3500 yardstick, GBP/USD now gathers some fresh bids and advances to the 1.3530-1.3540 band in the latter part of Tuesday’s session. Cable’s recovery comes as the Greenback surrenders part of its advance, although it keeps the bullish bias well in place for the day.

Gold bounces back toward $4,900, looks to FOMC Minutes

Gold is attempting a bounce from the $4,850 level, having touched a one-week low on Tuesday. Signs of progress in US–Iran talks dented demand for the traditional safe-haven bullion, weighing on Gold in early trades. However, rising bets for more Fed rate cuts keep the US Dollar bulls on the defensive and act as a tailwind for the non-yielding yellow metal. Traders now seem reluctant ahead of the FOMC Minutes, which would offer cues about the Fed's rate-cut path and provide some meaningful impetus.

DeFi could lift crypto market from current bear phase: Bitwise

Bitwise Chief Investment Officer Matt Hougan hinted that the decentralized finance sector could lead the crypto market out of the current bear phase, citing Aave Labs’ latest community proposal as a potential signal of good things to come.

UK jobs market weakens, bolstering rate cut hopes

In the UK, the latest jobs report made for difficult reading. Nonetheless, this represents yet another reminder for the Bank of England that they need to act swiftly given the collapse in inflation expected over the coming months.

Ripple slides to $1.45 as downside risks surge

Ripple edges lower at the time of writing on Tuesday, from the daily open of $1.48, as headwinds persist across the crypto market. A short-term support is emerging at $1.45, but a buildup of bearish positions could further weaken the derivatives market and prolong the correction.