GOLD Benefits From USD’s Drop!|KOL Analysis•Olimpiu Tuns

XAU/USD is traded higher at $1,966 level versus $1,962 yesterdays high and it seems poised to approach the $2,000 psychological level soon if the USD depreciates further against its rivals.

The global risk and the COVID-19 second wave fear could push the gold price higher again. The risk rally could dominate the markets again, so the yellow metal could become very attractive for investors and traders. Actually, the price of gold maintains a bullish outlook despite the latest retreat and sydeways movement.

● GOLD Breakout Attempt!

Gold is set to challenge the triangle‘s resistance in the upcoming hours. A valid breakout should validate more gains in the short term. The bullish bias remains intact after the price’s failure to touch and retest the $1,900 pyschological level.

Ive told you in my previous analyses that, Gold should jump higher if it registers only false breakouts through $1,900 level or if it fails to reach this critical support. The upper median line (UML) and the $1,900 represents strong support levels, only a drop below them suggests selling and a broader corrective phase.

The yellow matal acumulates bullish energy by moving sideways, an upside valid breakout could attract more sellers. The $2,000 level is seen as an important upside target. Breaking above this obstacle and above the first warning line (WL1) signal further growth at least until the $2,075 historical high.

Taking out the near-term resistance levels, gold becomes strongly bullish, the $2,100 and the second warning line (WL2) could be used as potential upside targets as well. The upside scenario could be invalidated only by a downside valid breakout and by a drop below $1,900 level.

● GBP/USD Tries To Recover!

GBP/USD is trading in the green in the short term, the rate could recover after its sell-off if the US Dollar Index continues to drop. Technically, the pair could register a temporary rebound as the outlook is bearish after the valid breakdown below the median line (ML) of the major ascending pitchfork.

It could try to come back to test and retest the median line (ML) and the 78.6% retracement level before dropping again. Another higher high, jump above 1.2920 could confirm this scenario.

The next downside target is seen at the 61.8% (1.2712) level. GBP/USD could hit this downside obstacle anytime if the USDX rallies. The selling pressure is high after the failure to stay above the median line (ML). The 50% Fibonacci line remains an attractive downside target, GBP/USD could approach this line if it makes another lower low.

The Pound is struggling to increase after the UKs data, the Unemployment Rate increased from 3.9% to 4.1% as expected, the Average Earnings Index dropped only by 1.0%, less versus 1.3% estimate, while the Claimant Count Change was reported at 73.7K, below the 99.5K forecast, which is good for the currency.

It remains to see how the USD, USDX, will react after the US will publish its Capacity utilization Rate and the Industrial Production indicators. USDX continues to drop, but a false breakdown below the 92.55 level or a failure to reach it coud send the index higher again.

{About the Author}

Olimpiu Tuns is a seasoned market analyst / trader / trainer on the financial markets with expertise in forex, cryptocurrencies, commodities, futures, options, index, CFD for more than 8 years. He is also a famous blogger in both technical and fundamental analysis, trading signals, trade setups, etc.

He has worked as a Market Analyst / Consultant for three major Brokerage companies, Admiral Markets, MultiBank Exchange Group, and InstaForex (live webinars, market analysis, educational materials, video analysis, video tutorials, ghostwriting, content creator), as a Social Media Manager and as a Financial Markets & Crypto Analyst / Contributor for very important news portals/blogs (investing.com, benzinga.com, forexalchemy.com actionforex.com, countingpips.com), websites, educational platforms (Forex.Academy, Forex.Today), independent clients, etc.

Olimpiu Tuns currently works as a Financial Markets & Crypto Analyst / Trader / Trainer / Portfolio Manager.

WikiFX, a third-party forex broker inquiry platform, has collected

the information of 19,000+ forex brokers, 30 regulators, and helped

victims recover over 300,000,000.00 USD. WikiFX App provides functions

like forex brokers inquiry, calender, forex news express, calculator and

other trading tools to help you get trading done with ease.

Forex brokers inquiry: in order to create a safe forex trading

environment, WikiFX offers you two methods of checking the compliance of

forex brokers, online checking and offline investigation report. WikiFX

has an independent inspection team, conducting on-spot visit to brokers

offices to identify they are trustworthy or not.

Forex calender: the financial events which may affect forex trading

Forex news express: providing you the latest info anytime and anywhere

Forex forum: tons of posts by WikiFX users, containing technical

analysis, industry discussion, fraud brokers exposure; Users can

exchange their thoughts here freely.