Daily Market Analysis By FXOpen

The Dollar Is Losing Some of Its Gains While Awaiting a Verdict from the Fed



The American currency continues to trade in different directions relative to leading currencies. Thus, the yen paired with theUS dollar fell in price to a 34-year low, and in pairs with European and commodity currencies we are seeing a corrective pullback in USD. Whether the main trends will continue, or whether it is worth preparing for a deeper corrective rollback, will be determined by the coming trading sessions:

1. Today at 12.00 (GMT +3:00) inflation data in the eurozone for April will be published
2. Today at 17.00 (GMT +3:00) the US consumer confidence index from CB will be released
3. Tomorrow at 21.00 (GMT +3:00) a meeting of the Federal Reserve is scheduled, at which the base interest rate on the dollar and the regulator’s further plans for monetary policy will be announced

EUR/USD
The single European currency has been holding above the key range of 1.0700-1.0600 for the third week. Technical analysis for EUR/USD indicates the possibility of working out a piercing line combination on the weekly timeframe, which could lead to a test of 1.0900-1.0840. A price move below 1.0600 may contribute to updating last year’s low at 1.0450.
In addition to the already mentioned news, today at 13.00 (GMT +3:00) it is worth paying attention to the speech of the Vice President of the German Federal Bank Claudia Maria Buch.

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Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

EUR/USD Dives While USD/CHF Extends Rally



EUR/USD started a fresh decline below the 1.0695 support. USD/CHF is rising and might aim a move toward the 0.9250 resistance.
Important Takeaways for EUR/USD and USD/CHF Analysis Today

 

1. The Euro struggled to clear the 1.0750 resistance and declined against the US Dollar.
2. There was a break below a key bullish trend line with support at 1.0695 on the hourly chart of EUR/USD at FXOpen.
3. USD/CHF is showing positive signs above the 0.9185 resistance zone.
4. There was a break above a major bearish trend line with resistance at 0.9130 on the hourly chart at FXOpen.

EUR/USD Technical Analysis

On the hourly chart of EUR/USD at FXOpen, the pair failed to clear the 1.0750 resistance. The Euro started a fresh decline below the 1.0700 support against the US Dollar, as mentioned in the previous analysis.
There was a break below a key bullish trend line with support at 1.0695. Besides, the pair declined below the 50-hour simple moving average and 1.0675. The pair traded as low as 1.0654 and is currently correcting losses.

The pair is showing bearish signs, and the upsides might remain capped. Immediate resistance on the upside is near the 23.6% Fib retracement level of the downward move from the 1.0735 swing high to the 1.0654 low at 1.0675.
The next major resistance is near the 1.0695 zone or the 50-hour simple moving average. It is close to the 50% Fib retracement level of the downward move from the 1.0735 swing high to the 1.0654 low.

An upside break above the 1.0695 level might send the pair toward the 1.0735 resistance. Any more gains might open the doors for a move toward the 1.0750 level.
On the downside, immediate support on the EUR/USD chart is seen near 1.0650. The next major support is near the 1.0630 level. A downside break below the 1.0630 support could send the pair toward the 1.0580 level.

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Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

The Dollar is Declining: the Outcome of the Fed Meeting Disappointed Investors



The outcome of the two-day meeting of the American regulator was that officials left the base interest rate unchanged in the range of 5.25-5.5%. Also, from the published statement, it follows that the Fed is ready to adjust the direction of current monetary policy in the event of risks that could hinder the achievement of the regulator's key objectives. Judging by the movement of major currency pairs after the rate decision announcement, market participants are hoping for a prompt change in the Fed's monetary policy. For example, the GBP/USD pair held above significant resistance at 1.2500, and the movement of USD/JPY hints at the possibility of hidden intervention by the Bank of Japan.

GBP/USD



Technical analysis of the GBP/USD pair indicates the possibility of an upward correction towards 1.2700-1.2620, as a "bullish engulfing" pattern has formed on the weekly timeframe. Breaking below recent lows at 1.2300 would invalidate this pattern, potentially leading to a resumption of downward movement towards the range of 1.2100-1.2070. Factors that could influence the pricing of the pair include:

1. Data on the UK's Composite Purchasing Managers' Index (PMI) for April, scheduled for release tomorrow at 11:30 (GMT +3:00)
2. US Employment Report, scheduled for release tomorrow at 15:30 (GMT +3:00)

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Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

USD/JPY Analysis: US Dollar Weakens After Statements from the Federal Reserve Chair



Last night, the Federal Reserve's decision regarding interest rates was published, which, as expected, remained unchanged at 5.5%. The subsequent press conference by Powell was of particular interest to market participants.
According to CNBC, during the conference, the Fed Chair almost ruled out a rate hike as the next step, emphasizing the monetary policy's independence from the upcoming presidential elections. Additionally, he stated that:

 

1. Concerns regarding stagflation are exaggerated;
2. The Fed intends to lower rates smoothly and gradually;
3. The duration of maintaining high rates is increasing indefinitely.

The market's reaction to the Fed's news was a weakening of the dollar – apparently, concerns about another rate hike as the next step have diminished.
The dollar weakened significantly against the yen – the USD/JPY rate dropped from 157.50 to 153.10 yen per dollar yesterday evening (approximately -2.7%) in less than an hour, although the rate later recovered. The reason lies in the context, specifically the yen's strong strengthening on Monday, when the rate exceeded 160 yen per dollar, as we wrote on the morning of April 29. Perhaps there was another intervention yesterday?
However, official sources refuse to comment. Tokyo may be adhering to a tactic of keeping investors in the dark about its currency intervention strategy. Although, as reported by the Japan Times, fluctuations of 5 yen per dollar indicate interventions.

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Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

April Became the Worst Month for BTC/USD Since November 2022



In November 2022, the BTC/USD price dropped by 16.20%. The main driver of this decline was the crash of the FTX exchange.
In April 2024, the price of Bitcoin decreased by 14.77%. Paradoxically, the main news event could be considered the halving, which occurs every 4 years and is considered a bullish factor as it signifies a reduction in supply from miners. So why did the BTC/USD price decrease by the end of April?
Presumably, expectations from the halving could have been excessively optimistic, and after the event occurred, the price declined as emotions subsided – an example of "buy the rumour, sell the fact" situation.
It's worth noting that in the Bitcoin Cash network (a fork of the Bitcoin blockchain from August 2017), the halving took place on April 4, and the BCH/USD price decreased after that day – which could have been a concerning signal.



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Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Market Analysis: AUD/USD and NZD/USD Attempt Another Recovery



AUD/USD is eyeing a steady increase above the 0.6555 resistance. NZD/USD is also rising and could extend its increase above the 0.6000 resistance zone.

Important Takeaways for AUD/USD and NZD/USD Analysis Today

1. The Aussie Dollar is moving higher from the 0.6465 zone against the US Dollar.
2. There is a connecting bullish trend line forming with support at 0.6555 on the hourly chart of AUD/USD at FXOpen.
3. NZD/USD is showing positive signs above the 0.5925 support.
4. There is a key bullish trend line forming with support at 0.5940 on the hourly chart of NZD/USD at FXOpen.

AUD/USD Technical Analysis

On the hourly chart of AUD/USD at FXOpen, the pair formed a base above 0.6465. The Aussie Dollar started another recovery wave above the 0.6510 resistance against the US Dollar
The bulls pushed the pair above the 0.6525 resistance zone. There was a close above the 0.6555 resistance and the 50-hour simple moving average. Finally, the pair tested the 0.6585 zone. A high is formed at 0.6585 and the pair is now consolidating above 23.6% Fib retracement level of the upward move from the 0.6465 swing low to the 0.6585 high.

On the upside, the AUD/USD chart indicates that the pair is now facing resistance near 0.6585. The first major resistance might be 0.6620. An upside break above the 0.6620 resistance might send the pair further higher.
The next major resistance is near the 0.6665 level. Any more gains could clear the path for a move toward the 0.6720 resistance zone.
If not, the pair might correct lower. Immediate support is near a connecting bullish trend line at 0.6555. The next support could be 0.6525 or the 50% Fib retracement level of the upward move from the 0.6465 swing low to the 0.6585 high.
If there is a downside break below the 0.6525 support, the pair could extend its decline toward the 0.6510 zone. Any more losses might signal a move toward 0.6465.

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Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

AAPL Share Price Soars after Record Buyback Announced



Yesterday, after the end of the main trading session, Apple published its report on its activities for the 1st quarter:
→ Earnings per share: actual = $1.53; expected = $1.505;
→ Gross income: actual = $90.75; expected = $90.36.
The better-than-expected report came as a relief to investors after reporting lower sales in five of the last six quarters. In addition, the following could give positive feedback to market participants:
→ Apple's forecast is that its iPad manufacturing and services business will grow at double-digit rates;
→ company investments in AI. “We think we're well positioned,” Chief Financial Officer Luca Maestri told Bloomberg Television's Emily Chang. CEO Tim Cook is expected to outline Apple's artificial intelligence strategy at its annual Worldwide Developers Conference in June.
→ Apple Inc.'s big plan to restore investor confidence. It consists of a record $110 billion share buyback and a 4% dividend increase.
As a result, AAPL's price rose nearly 8% in post-market trading, exceeding $185 per share, although yesterday's close was around $173.



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Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

The Price of Silver (XAG/USD) is Falling for the Second Consecutive Week



Following a surge in the price of silver close to the important psychological level of $30 per ounce on April 12, bearish momentum is now evident - concluding the week may mark the second consecutive week of decline for XAG/USD.
The decline in demand for silver could be linked to the decrease in gold prices.
Conversely, gold is losing its appeal due to:
→ easing geopolitical tensions in the Middle East;
→ gold's lack of yield, which is deemed unattractive in a high interest rate environment that may persist due to the Federal Reserve's policy - investors are given reason to favour low-risk bonds in their portfolios.



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Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Watch FXOpen's 29 April - 3 May Weekly Market Wrap Video
Weekly Market Wrap With Gary Thomson: FTSE 100, US Dollar, USD/JPY, BTC/USD


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1. London Calling! FTSE 100 Stocks Flying High Once Again;
2. The Dollar Is Declining: The Outcome Of The Fed Meeting Disappointed Investors;
3. USD/JPY Analysis: US Dollar Weakens After Statements From The Federal Reserve Chair;
4. April Became The Worst Month For BTC/USD Since November 2022.

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What Did Buffett Say at the Shareholders' Meeting?



Warren Buffett, aged 93, held his first Berkshire Hathaway shareholders' meeting this weekend without Charlie Munger, his longtime partner at Berkshire Hathaway, who passed away at the age of 99.
Following the meeting, it was revealed that Berkshire Hathaway's cash reserves are at record levels and continuing to grow, reflecting the challenge of finding stocks for the value investing strategy that has defined billionaire Warren Buffett's success.
Cash, cash equivalents, and short-term Treasury bills for Buffett's group totaled $189 billion at the end of March, up 13% from the end of 2023. "It is fair to assume that by the end of this quarter they will probably be around $200 billion," Buffett said.
According to the legendary investor:

 

1. Berkshire sold about 13% of its Apple shares;
2. reduced its stake in Chevron by approximately 2%;
3. Coca-Cola and American Express are "wonderful companies";
4. the Indian stock market may present "untapped opportunities";
5. "We only pick those areas that we like."

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Japanese Yen Goes on Volatility Drive after US Economic Uncertainty Surfaces



The Japanese yen has been notably volatile for a long time now, and today, that dynamic continues as the yen made some tremendous steps forward over the course of the Asia Pacific trading session.
In today's Asia Pacific trading session, the USDJPY pair has become the second most volatile currency on FXOpen's TickTrader platform this morning.
There have been some economic factors surrounding both the Japanese and United States economies that have surfaced during the course of the morning, including some very interesting reports and releases of data from the US government on economic circumstances surrounding the country.

The USDJPY pair was trading at 157.74 on 1st May, according to FXOpen pricing, and began to decline from there, going down to 153.13 by Thursday, 2nd May, followed by a further dip to 151.85 on Friday, settling at 153.787 at 8.15 am UK time today (Monday, 6th May) having continued this level during the Asia Pacific session.

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Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

UK100 Analysis: Stock Market Optimistic Ahead of Bank of England News



On Monday, the UK observed a bank holiday for May Day, and on Tuesday, the stock market demonstrated accumulated optimism.
The FTSE index (UK100) today surpassed the 8300 mark. Additionally:
→ The opening occurred with a bullish gap;
→ On the daily chart of UK100, today the RSI indicator is in overbought territory, unseen since the beginning of 2023.
One of the significant drivers of bullish sentiments could be considered events on Thursday – at 14:00 GMT+3, news from the Bank of England is expected: market participants will learn about the decision on the interest rate, followed by a press conference.
As Econoday writes:
→ A decision to cut interest rates is unlikely at Thursday's meeting, with autumn being seen as the most probable period for a 0.25-point rate cut from the current level of 5.25 points.
→ Members of the rate-setting committee are concerned that inflation is slowing down too slowly. However, the trend is in the right direction, and the Bank of England has already stated that the 2 percent target does not necessarily need to be reached before interest rates are lowered.
Perhaps the anticipation of signals for monetary policy easing instils confidence in the bulls, but how sustainable can the current growth be?



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The US Labour Market Is Slowing Down. How Could This Impact Major Currency Pair Pricing?



A weak employment report in the US contributed to a sharp pullback in major currency pairs, but it hasn't led to a full change in major trends yet. For instance, nonfarm payroll figures showed that:

1. The number of new jobs came in at 173K, compared to the forecast of 238K.
2. Average monthly wages decreased by 0.2% against an expected 0.3% increase.
3. Unemployment rose to 3.9% from 3.8%.

Following the slowdown in job growth, investors will eagerly await inflation data. If the figures meet or exceed expert forecasts, expectations for a rate cut by the US regulator could increase.
GBP/USD

According to technical analysis of the GBP/USD pair using the "chaos" system, we are seeing a corrective pullback after the formation of a reversal bar on April 22. Attention should be paid to price behaviour around 1.2520-1.2500. If the price rebounds from this range, it could strengthen towards 1.2640-1.2600. A drop below support at the entwined alligator lines may lead to a retest of the recent low around 1.2300.

Key events of the week include:

1. Today at 11:30 (GMT +3:00), publication of data on business activity index in the UK construction sector for April.
2. Thursday at 14:00 (GMT +3:00), Bank of England meeting and decision on the GBP base interest rate.

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Rivian Stock Goes High as Q1 Report Anticipation Mounts



Being a newcomer within a very long-established and somewhat traditional global industry is not easy.
The automotive industry is a case in point. It has been over 139 years since Karl Benz managed to successfully produce the first motorised vehicle, and since then, huge global conglomerates have built economies of scale to compete against each other fiercely in every corner of the world whilst evolving gradually rather than taking a revolutionary position.

Suddenly, in 2014, the now infamous Elon Musk came from outside the traditional manufacturing or automotive sectors and disrupted an age-old, highly polished, and well-established industry to the extent that even Mercedes Benz, the company that invented the car all those years ago, has begun making electric cars to compete with those introduced by Elon Musk's Tesla company.

More recently, some even newer names have entered the electric vehicle arena, some of which listed their stock on public exchanges in North America with high-value listings despite little or no market share, having done so via controversial SPAC 'blank check' companies toward an audience which, for many, would have heard the names of such companies for the first time.

One such firm is Rivian Automotive, which listed its stock on the NASDAQ exchange in November 2021 at a price of $78 per share. Since then, Rivian, whose main product is an electric pickup truck, has been incredibly volatile, trading at a lot less than $10 per share more recently, but had been fluctuating around $25 in December.

As the New York trading session came to a close yesterday, Rivian stock was among the top risers on FXOpen's TickTrader platform, concluding the trading day at $10.31 per share according to FXOpen pricing.

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Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

The Hang Seng Index Has risen by Over 13% in 2 Weeks



Analyzing the Hang Seng (HSI) chart, we wrote on January 30th that the price was near an important support level formed by the lower boundary (shown in orange) of a long-term channel, which has been relevant since 1995.
According to Reuters, Goldman Sachs representatives noted in a client note that hedge funds were actively buying Chinese stocks – the period from January 23 to 25 saw the largest capital inflow in 5 years.
As of the beginning of May, price action suggests that hedge fund purchases are justifiable – with the Hang Seng 50 index rising by over 13% in the past two weeks.
This was partly driven by:

1. Economic stimulus from Beijing.
2. The Hong Kong Monetary Authority's (HKMA) decision to keep the base rate unchanged at 5.75%. As reported by the South China Morning Post, HKMA's decisions correlate with the Federal Reserve's policy since 1983, reflecting the local currency's peg to the US dollar.

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Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

AUD/USD Analysis: Aussie Weakens After RBA Decision



Following its decision on 7th May, the Reserve Bank of Australia (RBA) opted to maintain the interest rate at 4.35%, despite inflation continuing to decrease at a slower pace than anticipated by the RBA.
"I think we still think they’re reasonably balanced with perhaps a little bit of a signal that we need to be very watchful on the upside," RBA governor Michele Bullock said.
According to The Guardian, the absence of more aggressive language led to a decline in the Australian dollar.
Specifically, on the morning of 8th May, the AUD/USD rate fell below the 0.657 level, whereas on 7th May, the rate was at 0.664 - a decrease of approximately 1.3% in 30 hours.



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Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

GBP/USD Bulls Struggle While USD/CAD Regains Strength



GBP/USD declined below the 1.2550 support zone. USD/CAD is rising and might aim for more gains above the 1.3760 resistance.
Important Takeaways for GBP/USD and USD/CAD Analysis Today

1. The British Pound started a fresh decline from the 1.2635 resistance zone.
2. There is a key bearish trend line forming with resistance at 1.2500 on the hourly chart of GBP/USD at FXOpen.
3. USD/CAD is showing positive signs above the 1.3685 support zone.
4. There is a major bullish trend line forming with support at 1.3720 on the hourly chart at FXOpen.

GBP/USD Technical Analysis

On the hourly chart of GBP/USD at FXOpen, the pair started a fresh decline from the 1.2635 zone. The British Pound traded below the 1.2550 support to move into further a bearish zone against the US Dollar.
The pair even traded below 1.2500 and the 50-hour simple moving average. Finally, the bulls appeared near the 1.2465 level. A low was formed at 1.2467 and the pair recently attempted a recovery wave. The pair climbed above the 1.2485 level.

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Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

GBP/USD Analysis: Pound Recovers After the Bank of England Decision



Yesterday, the Bank of England published its interest rate decision. According to ForexFactory, the votes were distributed as follows:
→ rate hike - 0 votes, cut - 2 votes, unchanged - 7 (0 - 2 - 7);
→ forecast: 0 - 0 - 9;
→ previous values: 0 - 1 - 8.

For the first time in the current cycle of interest rate hikes aimed at inflation lowering, two members of the Monetary Policy Committee voted in favour of the rate cut. The dovish tone was echoed by Bank of England Governor Andrew Bailey: “It is likely that we will need to cut the bank rate over coming quarters, possibly more so than is currently priced into markets.”

The market's first reaction to the clear signals of the imminent easing monetary policy was the weakening of the pound, including against the US dollar. Thus, yesterday, the GBP/USD rate dropped below the low of April 26 at around 1.245.

However:
→ the US dollar is also affected by the prospect of the Fed's easing monetary policy because the current tight policy puts pressure on the labour market - according to data from May 9, the number of applications for unemployment benefits in the US was the highest since November 2023;
→ Today's UK GDP data (which turned out to be better than expected) supported the pound.



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Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

WTI Oil Price Recovers Quickly From March Lows



On May 8, the price of WTI crude oil fell below $77 per barrel for the first time since March 11. But on the morning of May 10, it was above $79 – an increase of almost 3% in less than two days.
Several factors contributed to the significant rise in the price of WTI crude oil. According to Reuters, among them:
→ Increased oil demand from the United States. Data released on Wednesday showed a drop in US crude oil inventories, driven by increased refinery utilisation.
→ Growing demand from China. Data published on Thursday showed an increase in oil imports.
→ Ongoing concerns about possible supply disruptions due to escalating conflict in the Middle East. Negotiations to end hostilities between Israel and Hamas failed, and Israel attacked the Palestinian city of Rafah.
On April 19, we wrote about the possibility of a bearish breakdown of the ascending channel line, which would be welcomed by the US administration, where the presidential elections are getting closer and closer.
Since then, the price of oil has broken down the median line and the support line at $80.70, which may act as resistance in the future.



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Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Market Analysis: Gold Price Regains Strength While Crude Oil Price Recovers



The gold price started a fresh increase above $2,320. Crude oil is recovering and might rise toward the $81.20 resistance zone.
Important Takeaways for Gold and Oil Price Analysis Today

1. The gold price started a decent increase from the $2,300 zone against the US Dollar.
2. It broke a key descending channel with resistance at $2,315 on the hourly chart of gold at FXOpen.
3. Crude oil is recovering losses and trading above the $78.55 support.
4. There was a break above a connecting bearish trendline with resistance near $78.40 on the hourly chart of XTI/USD at FXOpen.

Gold Price Technical Analysis

On the hourly chart of XAU/USD at FXOpen, the price formed support near the $2,275 zone, remained in a bullish zone, and started a strong increase above $2,300.
It broke a key descending channel with resistance at $2,315. The bulls even pushed the price above the $2,345 level and the 50-hour simple moving average. Finally, it traded as high as $2,358. XAU/USD is now consolidating gains near the $2,355 zone, and the RSI is above 70.
Initial support on the downside is near the 23.6% Fib retracement level of the upward move from the $2,307 swing low to the $2,358 high at $2,345.
The first major support is near the $2,335 zone. It is close to the 50% Fib retracement level of the upward move from the $2,307 swing low to the $2,358 high. If there is a downside break below the $2,335 support, the price might decline further.

In the stated case, the price might drop toward $2,320 and the 50-hour simple moving average.
Immediate resistance is near the $2,360 level. The next major resistance is near the $2,372 level. An upside break above the $2,372 resistance could send the gold price toward $2,385. Any more gains may perhaps set the pace for an increase toward the $2,400 level.

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Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.