Gold (XAU/USD) saw a slight decline on Tuesday, dropping by approximately 0.4% to close near $2,315, following a strong performance on Monday. Despite recent ups and downs, the precious metal has remained relatively stagnant over the past two weeks, with volatility decreasing during this period, suggesting a possible consolidation phase as traders await fresh catalysts before making new moves.
The consolidation in the market is expected to continue until prices either break above the resistance level at $2,355 or fall below the support level at $2,280. If resistance is breached, attention will shift to $2,415, with further gains potentially sparking renewed interest in reaching the all-time high. Conversely, a break below support could trigger a decline towards a significant Fibonacci level at $2,260, followed by focus on $2,225.
Turning to EUR/USD, the currency pair experienced a minor decline on Tuesday after failing for the third time to surpass its 50-day and 200-day simple moving averages at 1.0790, a strong resistance zone. Prices then moved towards support at 1.0750. Maintaining this support level is crucial to prevent a deeper retracement; failure to do so could lead to further downside towards 1.0725 and potentially 1.0695.
In case of a bullish reversal, the first resistance to watch is near 1.0790, followed by 1.0820, which aligns with a medium-term downtrend line from the December 2023 highs. Further strength could encourage bulls to target the 50% Fibonacci retracement of the 2023 decline, situated around 1.0865.
GBP/USD also saw a decline on Tuesday, nearly testing the 1.2500 level. A clear break below this level in the coming days could intensify bearish pressure, possibly leading to a retest of technical support near 1.2430. While prices might stabilize around these levels before a potential rebound, a breakdown could open the path towards the psychological support at 1.2300.
On the upside, if buyers regain control and push cable above its 200-day simple moving average, resistance is seen between 1.2600 and 1.2630, where the 50-day simple moving average intersects with two important trendlines. A breakthrough above this resistance zone could bring optimism to the market and propel the pound higher, setting the stage for a rally towards 1.2720.
