Gold to keep on rallying towards next resistances at 1276-1280 - Natixis

Sandeep Kanihama FXStreet Contributor

In view of the Micaella Feldstein, Research Analyst at Natixis, an upside channel is still intact on the daily chart of gold and the weekly indicators keep on picking up.

Key Quotes

“Besides, the important 1244-1250 area (50% Fibonacci retracement of the 1377-1123 bearish wave) has been cleared.”

“Against this backdrop, we expect Gold to keep on rallying towards next resistances at 1276-1280 (rising trendline) ahead of 1290 (Fibonacci extension) and the 1302 barrier (weekly Bollinger upper band). The clearance of the latter would underpin bullish momentum, flagging 1330-1339 and 1362-1367 (monthly parabolic) as targets. The supports stand at 1244-1250, at 1222-1226, at 1202-1209 and at 1184.”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

EUR/USD looks weak below 1.1800

EUR/USD has slipped back under pressure, breaking through the 1.1800 support and drifting towards the weekly lows near 1.1770 ahead of the opening bell in Asia. The move reflects renewed strength in the US Dollar, with steady geopolitical tensions keeping its demand firm. Moving forward, the release of the German labour market report and flash inflation figures should keep European investors entertained on Friday.

GBP/USD threatens the 200-day SMA near 1.3440

GBP/USD rapidly leaves behind Wednesday’s strong advance, coming under heavy pressure and retesting the 1.3440 zone, where the critical 200-day SMA is located. Cable’s deep pullback follows the strong gains in the Greenback, while investors continue to pencil in a potential BoE rate cut in March.

Gold trims gains, slips back to around $5,170

Gold is now facing some downside pressure, hovering around the $5,170 region on Thursday. The yellow metal surrenders part of its earlier gains on the back of the resurgence of the buying interest in the Greenback. In the meantime, geopolitical tensions in the Middle East continue to limit the downside potential for now.