13 May 2022 – Gold Trades At $1,810

market news summary

USDX pushes higher;

Gold towards $1,800;

Euro free falling.

U.S. Dollar Index (USDX)

The U.S. Dollar index remains near the highest level in over 20 years, but the index showed a slow down during the early trades. Despite today’s retreat, the USDX cemented its long-term upward trend closing above the support of 103.60 and forming a continuation pattern.

On the daily chart, the index shows a continuation pattern towards 105.30 under the condition that it never closes under 104.10. Otherwise, in case the index closed between 103.60 and 104.10 it is likely to trade horizontally before testing the rise again. However, on the hourly chart, technical indicators and trend lines expect the index to trade lower.

PIVOT POINT: 104.60

SUPPORT	RESISTANCE
104.30	104.80
103.60	105.30
103.20	105.50

Euro (EURUSD)

The Euro remains on the primary downtrend on the long-term chart, while it shows a short correction movement on the hourly chart. Technical indicators signal a continuation towards 1.0350. Meanwhile, in the longer term, the pair is set to continue its primary downtrend.

PIVOT POINT: 1.0410

SUPPORT	RESISTANCE
1.0350	1.0490
1.0200	1.0650
1.0110	1.0675

Sterling Pounds (GBPUSD)

The Cable traded lower today as the U.S. dollar is gaining massive momentum after the U.S. CPI figures, which pushed the pound to its lowest rate in 11 months. The Cable is set to continue the primary decline to touch its lowest rate in a year below 1.2100.

On the daily chart, the pair is expected to fall to 1.2070, while the hourly chart shows a likelihood to trade around 1.2000 during the day. The RSI and MACD are showing signals for a further decline in a slow fashion, while price action retains the reading of 1.2100 during the day.

PIVOT POINT: 1.2200

SUPPORT	RESISTANCE
1.02070	1.2400
1.1980	1.2565
1.1900	1.2690

Japanese Yen (USDJPY)

Unlike other majors, the samurai currency gained ground against the greenback this morning as high inflation might help the Japanese economy to recover.

The USDJPY pair broke below the support of 130.30 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: 128.70

SUPPORT	RESISTANCE
128.35	130.60
128.00	131.30
127.80	132.00

Spot Gold (XAUUSD)

Gold sharply declined to its lowest since February touching $1,810 per ounce before bouncing back to 1,825. The precious metal retains its negative trend on the daily chart, and it is likely to continue the downward to settle the day between 1,810 and 1,800.

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: 1,825

SUPPORT	RESISTANCE
1,800	1,890
1,792	1,895
1,785	1,905