The price of gold is currently struggling to recover past the $2,040 resistance mark against the US Dollar. On the 4-hour chart, a key bearish trend line is forming with resistance near that same $2,040 level. Meanwhile, Bitcoin’s price has experienced a significant decline, trading below $40,000.
Looking ahead, the US Manufacturing PMI is expected to remain at 47.9 in January 2023 (Preliminary). Amid these market dynamics, it is important to consider potential economic releases that could impact trading conditions.
From a technical standpoint, the 4-hour chart of XAU/USD shows signs of possible upward momentum as the price climbed above the 50% Fib retracement level. However, the price continues to face resistance near the $2,040 zone, trading below the 100 and 200 Simple Moving Averages and with a key bearish trend line forming. An upside break above the $2,040 level could pave the way for a surge toward the $2,060 resistance, with further upside potential towards $2,080 and $2,100.
In terms of support, initial levels are near $2,015, with a major support at $2,000 and potential further losses towards $1,975. As for Bitcoin, it has faced strong selling pressure, causing the price to dip below $40,000.
Looking ahead, economic releases to watch include Manufacturing PMI data from Germany and the UK, as well as, Euro Zone and US Services PMI numbers for January 2023. These data points have the potential to influence market sentiment and trading activity.
