Gold Price Forecast: XAUUSD needs to break out of the $1,875-$1,840 range to determine its next direction.

Gold remains on track to close the third straight week higher. However recent price action suggests that XAUUSD could find it difficult to make a decisive move in either direction unless it breaks out of the $1,840-$1875 range, FXStreet’s Eren Sengezer reports.

Gold Price defines breakout levels.“The Fibonacci 38.2% retracement of the latest downtrend seems to have formed stiff resistance at $1,875. With a daily close above that level, gold could target the $1,890/$1,900 area (100-day SMA, 50-day SMA, Fibonacci 50% retracement) and $1,915 (Fibonacci 61.8% retracement) afterwards.”

“$1,850 (Fibonacci 23.6% retracement) aligns as interim support before $1,840 (200-day SMA). In case the latter turns into resistance, this could be seen as a significant bearish development and attract sellers. In that scenario, additional losses toward $1,830 (June 1 low) could be witnessed.”

EUR/USD recovers to 1.0750 following NFP-inspired decline

EUR/USD has regained its traction and recovered to the 1.0750 area after falling toward 1.0700 with the initial reaction to the upbeat US Nonfarm Payrolls data. The ISM Services PMI in May declined to 55.9 from 57.1 in April, making it difficult for the dollar to preserve its strength.


GBP/USD climbs above 1.2550 as dollar loses strength

GBP/USD erased its daily losses and advanced beyond 1.2550 in the American session. The dollar, which gathered strength on better-than-expected NFP print, lost its bullish momentum after the ISM Services PMI came in below the market forecast.


Gold stays on the back foot as US yields cling to gains

Gold managed to erase a portion of its daily losses but seems to be having a tough time gathering bullish momentum. The benchmark 10-year US Treasury bond yield is up more than 1% on a daily basis after the latest US data, limiting XAU/USD’s upside.

Leave a Comment

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s