XAU/USD outlook: Gold remains well supported by overheated geopoliticals

Slobodan Drvenica Windsor Brokers

Gold

Spot gold price eases from new three month high ($1865) posted last Friday when the metal price rose 1.75% (the biggest one-day advance since 13 Oct 2021).

Overall structure remains firmly bullish as rising tensions over Ukraine continue to boost demand for safe-haven gold.

Bulls are likely to consolidate before resuming higher for attack at $1875/77 targets (50% retracement of $2074/$1676 pullback), violation of which would spark acceleration through $1900 barrier and unmask next Fibo level at $1922 (61.8%).

Probe through the bear-trendline off $2074 record high (at $1846) adds to bullish signals.

Shallow dips should ideally find ground at $1840 zone (rising 5DMA / near Fibo 23.6% of $1780/$1865 upleg) and offer better opportunities to re-enter bullish market and keep intact lower pivots at $1832 (Fibo 38.2% of 1780/$1865) and $1823 (converged 10/20DMA’s).

Res: 1865; 1877; 1881; 1900.
Sup: 1850; 1840; 1832; 1823.

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

1. R3 1922.03
2. R2 1893.77
3. R1 1877.5
PP 1849.24
1. S1 1832.97
2. S2 1804.71
3. S3 1788.44

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 remains offered, challenges the 200-day SMA

EUR/USD adds to the current leg lower and comes just pips away from its significant 200-day SMA around 1.1580 as the NA session draws to a close on Thursday. The deeper drop comes in response to the intense advance in the Greenback, this time propped up by firm US data and higher US Treasury yields.

GBP/USD drops to four-week lows near 1.3360

Moving in step with other risk-sensitive peers, GBP/USD is attracting heavier selling and has slipped below the key 1.3400 support on Thursday to hit fresh four-week troughs. Cable’s decline reflects a firmer US Dollar as investors keep evaluating the latest batch of US data.

Gold remains offered just above $4,600

Gold is giving back part of its recent strong run, managing to bounce off earlier lows and reclaim the area beyond the $4,600 mark per troy ounce on Thursday. The pullback comes as the Greenback regains traction, Treasury yields move higher, and some profit-taking kicks in.