Gold price consolidates the intraday losses, drops toward filling the day-start gap on the upside. A two-week-old ascending triangle restricts short-term moves, bearish MACD favor sellers. Given the bearish MACD favoring the quote’s further downside, gold sellers will wait for a clear break of the triangle’s support, currently around $1,840, for fresh entries. Following that, gold prices the previous week’s low near $1,830 and January’s low near $1,802, also the $1,800 threshold, can entertain the commodity sellers. On the contrary, $1,870 can please the short-term buyers during the bullion’s fresh run-up.
It should, however, be noted that the bulls are likely to remain cautious until the gold prices rally beyond $1,875, comprising the highs marked since January 21. In doing so, the bulls will eye the mid-November 2020 top surrounding $1,900. Overall, gold prices are likely fading the upside momentum. Though, sellers are waiting for confirmation. Silver (XAG/USD) bulls remain unstoppable for the fourth straight trading session this Monday, as the price reached the highest levels since February 2013 at $30.06. The relentless rise in silver is mainly driven by the Reddit Group’s led retail-trader craze, who have now shifted their attention to silver while targeting the white metal at $1000/ ounce. Meanwhile, SD Bullion cited that the physical stock of silver is almost gone, further fuelling the rally in the precious metal.
24-hour view: “We highlighted last Friday that ‘downward pressure has eased’ and we expected EUR to ‘trade sideways within a 1.2085/1.2150 range’. EUR subsequently traded between 1.2092 and 1.2155 before closing slightly higher at 1.2136. While further sideway-trading would not be surprising, the weakened underlying tone suggests EUR could retest the 1.2090 level. The major support at 1.2050 is not expected to come into the picture. Resistance is at 1.2145 followed by 1.2160.”
Next 1-3 weeks: “There is not much to add to our update from last Thursday (28 Jan, spot at 1.2105). As highlighted, ‘shorter-term downward momentum is improving and the risk is shifting to the downside’. That said, EUR has to close below 1.2050 before a sustained decline can be expected. The odds for such a move are quite high unless EUR moves above 1.2180. Looking ahead, the next support below 1.2050 is at 1.2000.”
- source : FXSTREET