XAUUSD, H4 – Last night, Gold prices rebounded near the key resistance again, creating a high around $1,736. The price rose prior to the announcement of US Jobless claims, which came out much higher than expected, at 2,981K from the forecast of 2,500K. That came with a warning of a new outbreak of Covid-19 that may be even more severe than before. However, last night the US stock market all closed up positive, with Dollar firmer.
After the relaxation of the lockdown measures, the short-term economic development trend is not improving, affecting market sentiment along with the fear of a second wave of Covid-19.
From the technical perspective, in the H4 chart, XAUUSD last night broke the upper line of April’s triangle, and as I have already written, the asset has the opportunity to develop a triple top reversal pattern.
The break of the triangle’s upper line (dotted line) to retest the April 23 high suggests that if the buying power remains strong, a move above the $1,738-$1,746 area may be the start of the return to 2012 highs, around $1,800. This may have to wait to see the trend of Covid-19 concurrently. If XAUUSD fails to pass the $1,738-$1,746 Resistance area, then it could find Support back at $1,722. A move further lower could lead gold to the bottom line of the channel, i.e. at $1,710.
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Market Analyst – HF Educational Office – Thailand
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