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Gold Price, USD/JPY, EUR/USD – Technical Analysis and Trade Setups

May 9, 2024

Via: DailyFX

Gold (XAU/USD) fell on Wednesday, marking the second consecutive session of losses and nearly erasing Monday’s entire rally. Despite short-term ups and downs, the precious metal has been locked in a sideways movement for the past two weeks. This period of consolidation clearly highlights the current market indecision, with traders likely waiting for new catalysts before taking new directional bets.

To break out of this holding pattern, gold will need to clear either the resistance at $2,355 or the support at $2,280. A move above resistance would likely shift focus towards $2,415, potentially rekindling interest in the all-time high. Alternatively, a breach of support could trigger a slump towards an important Fibonacci area at $2,260, with further downside risk towards $2,225 in the event of a breakdown.

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