News Technical Analysis

18 May 2022 – Gold Moves Towards $1,785

market news summary

USDX holds above 103;

Gold targets $1,785;

Crude is under pressure.

U.S. Dollar Index (USDX)

The U.S. Dollar Index started the fourth declining day in what is seen as a corrective movement trading slightly below the support of 103.60. On the daily chart, the long term remains positive above the 20-day moving average.

On the daily chart, the index shows a slight possibility for a continuation of the uptrend. However, the hourly chart shows support around the current levels between 103.40 and 103.60.

PIVOT POINT: 103.60

SUPPORTRESISTANCE
103.20104.10
102.85104.80
102.50105.00

Euro (EURUSD)

The common currency remains in a downwards trend over the daily time frame, even with the gains recorded over the last several days. The EURUSD touched resistance at 1.0540 before showing a tendency to trade lower.

Technical indicators show a higher possibility to fall than continuing the uptrend, however, the moving average on the daily chart remains above the current price levels.

PIVOT POINT: 1.0540

SUPPORTRESISTANCE
1.04901.0590
1.03501.0650
1.02001.0675

Sterling Pounds (GBPUSD)

The Sterling pound traded horizontally this morning and built a neutral level. However, the chart shows a reversal pattern on the hourly chart while it signals a continuation of the long-term negative trend on the daily chart.

The RSI and MACD are showing signals for a further decline, while price action retains the reading of 1.2100 during the day.

PIVOT POINT: 1.2400

SUPPORTRESISTANCE
1.21001.2500
1.19801.2565
1.19001.2690

Japanese Yen (USDJPY)

The USDJPY pair traded below the support of 130.30 for the fourth consecutive day and formed a declining pattern on the hourly chart. Meanwhile, on the daily chart, the pair remains in the uptrend unless it broke below the support of 128.70. While the moving average reading indicates that the current level is critical resistance, MACD and RSI readings are neutral.

PIVOT POINT: 129.30

SUPPORTRESISTANCE
128.35130.60
128.00131.30
127.80132.00

Spot Gold (XAUUSD)

Spot Gold sharply declined to its lowest since late January at $1,786 per ounce early this week before bouncing back to 1,825. The precious metal traded lower today at 1,810 signalling further decline targeting 1,785 on the short run and 1,750 over the long run.

Meanwhile, the hourly chart shows support at the current levels that might slow down the decline. Furthermore, both the RSI and the MACD imply that the bearish trend will continue.

PIVOT POINT: 1,810

SUPPORTRESISTANCE
1,8001,875
1,7921,895
1,7851,905

West Texas Crude (USOUSD)

Crude oil is trading on an uptrend hovering above 110 for the third day amid supply worries. Meanwhile, on the hourly chart, the crude shows support at $107.10 and resistance below $111.30.

Due to the heavy buying pressure, technical indicators show a possibility to see crude oil lower at $107. However, price action and moving average are showing a higher probability to continue climbing.

PIVOT POINT: 110.00

SUPPORTRESISTANCE
107.10111.30
105.75112.75
104.30115.00
Designer

Recent Posts

Market Closure in November

Dear Valued Clients, Please be advised that the following instruments' trading hours and market session…

1 week ago

Trading Hours Adjustment for upcoming US Daylight Saving

Dear Valued Clients, Please be informed that the trading hours for the following products will…

1 week ago

What are Forex Trading Sessions in India Time

Forex trading is a global phenomenon that operates 24 hours a day for five days…

1 week ago

Important Announcement – U.S. Election 2024

Dear Valued Clients, As we approach the 2024 U.S. election on November 5, 2024 (next…

1 week ago

Market Closure in November

Dear Valued Clients, Please be advised that the following instruments' trading hours and market session…

1 week ago

Role and Regulation of Forex Brokers in India

As the largest market in the financial world, the Forex Exchange Market attracts trillions of…

2 weeks ago

This website uses cookies.