2023-12-27 12:09:00
© Archyde.com. Gold challenges key resistance area, USD/JPY fails to regain 200-day moving average
On Wednesday (December 27), during the European trading session, spot gold was currently trading at $2,066.96 per ounce, a decrease of 0.03%. The U.S. dollar index is above 101, approaching its lowest level since late July. Gold prices were higher in thin trading following the Christmas holiday, buoyed by a pullback in the U.S. dollar.
Spot gold is just below the important resistance area of $2070-2075. Previous attempts to sustainably break through this resistance have been unsuccessful, and history may repeat itself this time.
If it turns lower, the initial support below is at $2,050, and further support is at $2,010. Bulls must defend this support or risk reigniting the downward trend, setting the stage for a drop to $1,990. If it falls below 1009, the focus turns to the more critical support of $1975.
On the other hand, if the key resistance level of $2070/$2075 is exceeded, the upward momentum may accelerate, creating suitable conditions for gold to start consolidating above $2100. If the market continues to strengthen, it might pave the way for another test of the all-time high of $2,150.
USD/JPY technical analysis
USD/JPY edged higher on Tuesday but failed to regain its 200-day moving average. If prices persist below the 200-day EMA, selling pressure might re-emerge and gather momentum, with an eventual drop to the December low of 140.95 possible. While this area may provide support during a pullback, a downside break might lead USD/JPY down to 139.50.
If the price moves above the 200-day moving average, initial resistance would be at 144.80. Overcoming this resistance will be challenging for the bulls, and a successful breakout might set the stage for a break above the next resistance at 146.00. If it breaks through 146.00, the next resistance is 147.20.
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