Gold (XAU)
Key news events today
Unemployment Claims (12:30 pm GMT)
What can we expect from DXY today?
Unemployment claims in the US have printed lower than the forecast over the past four weeks which signal a resilient labour market despite higher interest rates. Should claims print lower than the forecast again, demand for the US dollar should pick up once more following yesterday’s hawkish rhetoric from Federal Reserve Chairman Jerome Powell during his FOMC press conference and thus add further downward pressure on gold.
Next 24 Hours Bias
Medium Bearish
Technical
The XAU/USD chart currently exhibits a bearish overall momentum, with key factors contributing to its downward trajectory. In this context, there’s a potential scenario where the price may continue its bearish movement towards the 1st support level at 1915.81.
The 1st support at 1915.81 is identified as a pullback support, and it coincides with the presence of the 61.80% Fibonacci Retracement, signifying its importance as a significant support zone. Similarly, the 2nd support at 1901.57 is categorized as an overlap support, further emphasizing its potential significance as a key support level.
On the resistance side, the 1st resistance at 1937.84 is characterized as a pullback resistance and may serve as a point of resistance in the short term. Beyond the 1st resistance, the 2nd resistance at 1946.07 is identified as an overlap resistance, further highlighting its significance.
Additionally, there is an intermediate resistance level at 1028.18, categorized as a pullback resistance, which traders will monitor closely.
Oil
Key news events today
No major news events.
What can we expect from Oil today?
Following the larger than expected drawdown in API stockpiles, EIA crude oil inventories also fell more than originally anticipated as 2.1M barrels were drawn compared to the estimate of a 1.3M-drawdown. Despite US inventory levels falling more than expected, crude prices continued to pull back sharply overnight as a hawkish Federal Reserve could restrict global economic activity by keeping rates higher for longer. WTI oil fell under the $89-level and could remain under pressure today.
Next 24 Hours Bias
Medium Bearish
Technical
The WTI (West Texas Intermediate) chart currently exhibits an overall bearish momentum, suggesting a bearish break below the 1st support level with a potential continuation towards the 2nd support level.
The 1st support level at 88.77 is identified as an overlap support that aligns with the 23.60% Fibonacci retracement level while the 2nd support level at 87.49 is also marked as an overlap support.
To the upside, the 1st resistance level at 92.09 is identified as a multi-swing-high resistance. Further up, the 2nd resistance level at 94.51 is noted as a resistance that aligns with the 100.00% Fibonacci projection level.
