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

SUPPORT	RESISTANCE
103.20	104.10
102.85	104.80
102.50	105.00

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

SUPPORT	RESISTANCE
1.0490	1.0590
1.0350	1.0650
1.0200	1.0675

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

SUPPORT	RESISTANCE
1.2100	1.2500
1.1980	1.2565
1.1900	1.2690

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

SUPPORT	RESISTANCE
128.35	130.60
128.00	131.30
127.80	132.00

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

SUPPORT	RESISTANCE
1,800	1,875
1,792	1,895
1,785	1,905

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.