AUD/USD Current Price: 0.6662 US Dollar tumbles after Fed meeting as Treasury bonds jump.  Australia's employment report is due on Thursday. The AUD/USD breaks range, looks at monthly highs.  Following the December Federal Reserve (Fed) meeting, the AUD/USD pair jumped, surging above the 0.6600 level as the US Dollar tumbled. This upward movement suggests that the pair has the potential for further gains and could resume its uptrend after a two-week correction. As expected, the Fed decided to keep interest rates unchanged. In the staff projections, policymakers foresee three rate cuts for 2024. The dovish forecast has positively impacted Treasury bonds, while the US Dollar tumbled. With the confirmation that the Fed is done with hike rates, there is a room for further short-term weakness of the US Dollar. On Thursday, the Melbourne Institute will release the Consumer Inflation Expectations report. In November, the one-year expected inflation rate rose slightly to 4.9% from 4.8%. Additionally, the Australian Bureau of Statistics will release the Labour Force report, which is expected to show a positive change in employment of 11,000 in November. This represents a slowdown from the 55,000 jobs added in October.  Another significant release, early in the Asian session, will be the New Zealand Q3 Gross Domestic Product (GDP) report. In the US, important information is due with the weekly Jobless Claims and Retail Sales reports. AUD/USD short-term technical outlook The AUD/USD pair has broken through the key resistance area at 0.6620 and continued its ascent above 0.6650. In the daily chart, the Relative Strength Index (RSI) and Momentum indicators have turned to the upside, while the price remains firmly above important moving averages. The next significant barrier is observed at the December high at 0.6689, above the focus shifts towards the 0.6700 mark. The next resistance is at 0.6720.  On the 4-hour chart, the rally has pushed the technical indicators, such as the RSI, into overbought territory. However, the momentum remains significantly bullish. As long as the pair stays above the 0.6620 level, further gains are possible. A decline below 0.6570 would negate the positive momentum, and if the pair drops under 0.6550, it would likely test an uptrend line near 0.6500. Support levels: 0.6620 0.6570 0.6540  Resistance levels: 0.6680 0.6720 0.6745

XAU/USD Current price: 1,981.7 Gold prices hover within familiar levels ahead of the US Federal Reserve's decision. The United States central bank is widely anticipated to stay pat for a third consecutive meeting. XAU/USD at risk of extending its slump after posting a fresh weekly low. Gold prices see no action on Wednesday, with XAU/USD still stuck around $1,980.00. Financial markets are in wait-and-see mode ahead of the Federal Reserve (Fed) monetary policy announcement, the last one for 2023. Back in September, the Summary of Economic Projections (SEP) or dot plot, indicated that officials were still anticipating a terminal rate higher than the current 5.25%-5.50% interest rate. Still, policymakers refrained from hiking rates in the last two meetings, and the odds for a rate hike today are pretty much null. Speculative interest has long ago started priced in the end of monetary tightening, ignoring officials´ warnings against it. Furthermore, investors are pricing in multiple rate cuts for 2024, starting as soon as Q2. The SEP will then determine the direction of the US dollar, as the document may shed some light on what policymakers think could happen in the next couple of years. Additionally, Chair Jerome Powell will offer a press conference in which he will explain the Federal Open Market Committee (FOMC) decision. Powell's words will also be scrutinized for hints on future actions. The US Dollar will likely react to the market's sentiment, falling if investors turn optimistic and opt for high-yielding assets. XAU/USD short-term technical outlook XAU/USD is little changed for a second consecutive day, although it posted a lower low and a lower high on Wednesday. The daily chart shows that the pair extended its weekly decline to $1,973.00, the immediate support level. The pair develops midway between a mildly bullish 20 Simple Moving Average (SMA) at around $2,010 and directionless 100 and 200 SMAs, over $ 40 below the current level. Finally, technical indicators head nowhere just below their midlines,  reflecting the absence of speculative interest. Technical readings in the 4-hour chart favor a downward extension. XAU/USD develops below all its moving averages, with the 20 SMA heading firmly south after crossing below the longer ones. Meanwhile, technical indicators remain below their midlines with uneven slopes, although also reflecting absent directional interest. Support levels: 1,973.00 1,959.40 1,946.00 Resistance levels: 1,994.40 2,001.70 2,014.20

EUR/USD Current price: 1.0786 Markets in wait-and-see mode ahead of the Federal Reserve monetary policy announcement. Eurozone Industrial Production contracted by more than anticipated in October. EUR/USD poised to extend its slump, strong static support level at 1.0732. The US Dollar trades with a firmer tone on Wednesday, and ahead of the Federal Reserve (Fed) monetary policy decision. The EUR/USD pair met sellers around the 1.0800 mark and trades a handful of pips below the level mid-European session. The Fed is widely anticipated to keep interest rates unchanged for a third consecutive meeting, somehow confirming the end of the monetary tightening cycle without explicitly stating so. At the same time, the central bank will release the Summary of Economic Projections (SEP), which may provide fresh clues on what policymakers expect for the next couple of years. The focus will be on the Fed funds rate, as it would indicate how willing policymakers are to pivot and proceed with rate cuts. Growth and inflation perspectives will also be relevant in terms of price action. Meanwhile, the Eurozone released October Industrial Production, which declined by 0.7% MoM and contracted by 6.6% from a year earlier. EUR/USD short-term technical outlook The EUR/USD pair trades just below the 38.2% Fibonacci retracement of the 1.0447/1.1016 rally at 1.0800. The 50% retracement provides support at 1.0732, a couple of pips above the weekly low. From a technical perspective, the pair is bearish in the daily chart. Sellers rejected Tuesday's advance around a flat 200 Simple Moving Average (SMA) at around 1.0830, while the 20 SMA gained downward traction above the longer one. Technical indicators, in the meantime, turned lower within negative levels, skewing the risk to the downside without confirming it. In the near term, and according to the 4-hour chart, EUR/USD is neutral-to-bearish. The pair is trapped in a tight range defined by directionless 20 and 200 SMAs, while the 100 SMA gains downward traction above them. Finally, technical indicators aim marginally lower around their midlines, reflecting the absence of directional conviction. Support levels: 1.0730 1.0680 1.0640 Resistance levels: 1.0830 1.0860 1.0900

EUR/USD continues to fluctuate between key technical levels. The Fed is widely expected to leave the policy rate unchanged at 5.25%-5.5%. The revised Summary of Economic Projections and Powell's comments could impact the USD's valuation. EUR/USD climbed to a fresh weekly high near 1.0830 in the early American session on Tuesday but lost its bullish momentum. Early Wednesday, the pair fluctuates in a narrow channel at around 1.0800 as investors gear up for the Federal Reserve (Fed) policy announcements. The data from the US showed that inflation, as measured by the change in the Consumer Price Index (CPI), edged lower to 3.1% on a yearly basis in November as expected. Meanwhile, the Core CPI, which excludes volatile food and energy prices, rose 0.3% on a monthly basis to match the market consensus. Investors refrained from taking large positions after inflation figures and made it difficult for EUR/USD to find direction. The Fed is expected to leave the policy rate unchanged at 5.25%-5.5% following the last policy meeting of 2023. Since such a decision is already priced in, investors will scrutinize the revised Summary of Projections (SEP), also known as the dot plot, for fresh clues regarding the timing of a possible policy shift in 2024. Markets see a more than 40% probability that the Fed will reduce the policy rate by 25 basis points as early as March, according to the CME Group FedWatch Tool. In case Fed Chairman Jerome Powell pushes back against this market expectation and repeats that it's still too early to even think about a rate reduction, that could be seen as a hawkish hold and help the USD gather strength against its rivals.  On the other hand, EUR/USD could gather bullish momentum if the dot plot points to at least 100 basis points of rate cuts next year and Powell leaves the door open for a rate cut in the first half of the year by adopting an optimistic tone about the inflation outlook. EUR/USD Technical Analysis EUR/USD remains stuck between 1.0750 and 1.0830, where the 100- and 200-day Simple Moving Averages (SMA) are located. The pair needs to move out of that channel to determine its next short-term direction. With a break above 1.0830, EUR/USD could target 1.0860 (100-period SMA on the 4-hour chart) and 1.0900 (psychological level, static level). On the downside, 1.0700 (psychological level, Fibonacci 61.8% retracement) and 1.0660 (static level) could be set as next bearish targets if 1.0750 support fails.

US headline inflation fell to 3.1% as expected, thanks to an almost 9% fall in gasoline prices since last year, although shelter inflation – which is where everyone sees the biggest potential for easing - remained sticky yet another month. Core inflation eased to 4% on a yearly basis, BUT headline inflation was slightly higher-than-expected on a monthly basis. And that small uptick has raised suspicions that the Federal Reserve's (Fed) final stretch in combating inflation may be more challenging than anticipated.  The latter triggered a mini selloff in the 2-year bond right after the data, yet the selloff didn't last long. The US 2-year yield is about where it was yesterday morning. Crude oil fell to $68pb even though the US oil inventories fell 2.3 mio barrels according to the API.  With the latest inflation report behind us with minimal fanfare, the Fed officials will lightheartedly keep interest rates steady this month. Economic forecasts and the dot plot will play a crucial role in providing insight into the perspectives of Federal Reserve officials regarding expectations for rate cuts.   According to activity on Fed funds futures, the Fed should gently start cutting the rates by May; that possibility is given around 75% probability, slightly less than 80% before yesterday's CPI print, while the probability of a March hike fell to around 44% from nearly 50% on that mini spike in monthly headline inflation. In summary, rate cut bets are being placed for a rate cut in March or May 2024. May the best win.  Today, we will probably face a satisfied, calm but cautious Powell, who will say that the Fed has done a great job fighting inflation, but that the rates will remain restrictive as long as needed. One dovish tweak could be deleting 'additional policy firming' from the post-meeting communication.   In the best-case scenario, the doves will make a mountain out of the smallest dovish details that could justify a further fall in yields. The US dollar will likely remain under pressure below the 104.30 level, the major 38.2% Fibonacci resistance that should keep the US dollar index in the bearish consolidation zone. We could see the US 10-year retreat and even – shortly – test the 4% mark to the downside, and the 2-year yield – which captures the Fed expectations – to remain between 4.50/4.70 zone. Lower than that becomes unreasonably overstretched.   In a more down-to-earth scenario, Powell will contain market optimism and rectify the rate cut bets. If so, we should see correction and consolidation in bond and stock valuations during the final weeks of the year.

Gold price is treading water near three-week lows of $1,976 early Wednesday. US CPI data fuelled the recovery in the US Dollar alongside the US Treasury bond yields.    Gold price remains exposed to downside risks amid a bearish technical setup on the 4h chart. The Federal Reserve policy decision holds the key to a fresh Gold price directional impetus. Gold price is challenging bullish commitments early Wednesday, sitting near the lowest level in three weeks of $1,976. Gold price is taking it easy following a good two-way business seen on the United States (US) Consumer Price Index (CPI) data release, as the focus now shifts toward the US Federal Reserve (Fed) policy announcements for a fresh trading impetus.   Federal Reserve decision to rock Gold price Despite a pause in the recent sell-off, Gold price appears vulnerable in Wednesday's trading so far. Investors refrain from placing any fresh bets on the bright metal ahead of key event risk of this week, the Fed interest rate decision and policy outlook, especially after the US CPI inflation report revived bets for the Fed maintaining interest rates higher for longer. The CPI edged up 0.1% last month after being unchanged in October, the Labor Department's Bureau of Labor Statistics (BLS) showed on Tuesday. Annually, the CPI increased 3.1% in November after rising 3.2% in October. Although the US CPI numbers came in line with the market expectations, the details of the report showed an uptick in the shelter index and used car and trucks index, which helped push back against the market's pricing of Fed rate cuts next year. In an initial reaction to the US CPI data release, the US Dollar extended its intraday decline but quickly regained footing alongside the US Treasury bond yields after investors digested the data and its potential implications ahead of Wednesday's Fed decision. Gold price dropped below $1,980, having briefly spiked to $1,997 in a knee-jerk reaction to the US CPI report. Looking ahead, all eyes stay focused on the upcoming Fed decision, with the US central bank widely expected to hold rates at 5.25%-5.50%. However, comments from Fed Chair Jerome Powell and the so-called Dot Plot chart are likely to hold the key, as they could shed more light on the Fed's monetary policy outlook amid expectations of rate cuts in the first half of 2024. Markets are currently pricing about 43% odds of a March Fed rate cut while for May, the probability stands at about 75%. Should Powell and his colleagues dismiss expectations of a Fed rate cut in the first quarter of 2024, acknowledging elevated inflation level and still tight labor market conditions, the non-interest-bearing Gold price is likely to see a renewed sell-off, as the US Dollar demand returns. In contrast, Gold price could stage a solid recovery if the Fed's projections affirm aggressive rate-cut expectations and smash the Greenback across the board. In the meantime, the risk-averse market environment in the lead-up to the Fed event will keep the US Dollar underpinned, checking the upside attempts in Gold price. Gold price technical analysis: Daily chart As observed on the daily chart, Gold price remains on track to test the 50-day Simple Moving Average (SMA) at $1,970 after finding a strong foothold below the multi-week troughs of $1,976. The 14-day Relative Strength Index (RSI) indicator inches lower while below the 50 level, backing the case for further downside. Should the bearish momentum regain traction, the flattish 200-day SMA at $1,953 will be threatened, below which a test of the 100-day SMA at $1,941 cannot be ruled out. On the other hand, a sustained recovery will need acceptance above the 21-day SMA at $2,006 on a daily candlestick closing basis. Gold buyers will then target the November 27 high of $2,018 en route to the $2,040 supply zone.

Gold price is treading water near three-week lows of $1,976 early Wednesday. US CPI data fuelled the recovery in the US Dollar alongside the US Treasury bond yields.    Gold price remains exposed to downside risks amid a bearish technical setup on the 4h chart. The Federal Reserve policy decision holds the key to a fresh Gold price directional impetus. Gold price is challenging bullish commitments early Wednesday, sitting near the lowest level in three weeks of $1,976. Gold price is taking it easy following a good two-way business seen on the United States (US) Consumer Price Index (CPI) data release, as the focus now shifts toward the US Federal Reserve (Fed) policy announcements for a fresh trading impetus.   Federal Reserve decision to rock Gold price Despite a pause in the recent sell-off, Gold price appears vulnerable in Wednesday's trading so far. Investors refrain from placing any fresh bets on the bright metal ahead of key event risk of this week, the Fed interest rate decision and policy outlook, especially after the US CPI inflation report revived bets for the Fed maintaining interest rates higher for longer. The CPI edged up 0.1% last month after being unchanged in October, the Labor Department's Bureau of Labor Statistics (BLS) showed on Tuesday. Annually, the CPI increased 3.1% in November after rising 3.2% in October. Although the US CPI numbers came in line with the market expectations, the details of the report showed an uptick in the shelter index and used car and trucks index, which helped push back against the market's pricing of Fed rate cuts next year. In an initial reaction to the US CPI data release, the US Dollar extended its intraday decline but quickly regained footing alongside the US Treasury bond yields after investors digested the data and its potential implications ahead of Wednesday's Fed decision. Gold price dropped below $1,980, having briefly spiked to $1,997 in a knee-jerk reaction to the US CPI report. Looking ahead, all eyes stay focused on the upcoming Fed decision, with the US central bank widely expected to hold rates at 5.25%-5.50%. However, comments from Fed Chair Jerome Powell and the so-called Dot Plot chart are likely to hold the key, as they could shed more light on the Fed's monetary policy outlook amid expectations of rate cuts in the first half of 2024. Markets are currently pricing about 43% odds of a March Fed rate cut while for May, the probability stands at about 75%. Should Powell and his colleagues dismiss expectations of a Fed rate cut in the first quarter of 2024, acknowledging elevated inflation level and still tight labor market conditions, the non-interest-bearing Gold price is likely to see a renewed sell-off, as the US Dollar demand returns. In contrast, Gold price could stage a solid recovery if the Fed's projections affirm aggressive rate-cut expectations and smash the Greenback across the board. In the meantime, the risk-averse market environment in the lead-up to the Fed event will keep the US Dollar underpinned, checking the upside attempts in Gold price. Gold price technical analysis: Daily chart As observed on the daily chart, Gold price remains on track to test the 50-day Simple Moving Average (SMA) at $1,970 after finding a strong foothold below the multi-week troughs of $1,976. The 14-day Relative Strength Index (RSI) indicator inches lower while below the 50 level, backing the case for further downside. Should the bearish momentum regain traction, the flattish 200-day SMA at $1,953 will be threatened, below which a test of the 100-day SMA at $1,941 cannot be ruled out. On the other hand, a sustained recovery will need acceptance above the 21-day SMA at $2,006 on a daily candlestick closing basis. Gold buyers will then target the November 27 high of $2,018 en route to the $2,040 supply zone.

Markets Stocks extended gains for a fourth consecutive session on Tuesday, with the S&P 500 touching the highest level Since January 2022 as Wall Street carefully examined another set of inflation data, seeking clues on when the Federal Reserve might initiate monetary policy easing. Despite the mixed US CPI inflation print, perhaps at the heart of the matter is a keen set of investors who are encouraged by the disinflationary trend and may have found contentment in some of the details of Tuesday's report, suggesting that the Federal Reserve's preferred measure of inflation will remain subdued from here on out. Hence, some anticipation may be getting baked into the S&P 500 rally extension of a less vigilant inflationary pushback from Chair Powell, but still pushing back against excessive market front-end rate cut pricing. The market would then intuitively return to the Waller Pivot narrative, where the Fed would then mechanically ease tangentially with the decline in inflation. Which in itself is not a bad outcome for stocks. Oil prices Oil prices experienced a significant decline of more than 3% on Tuesday. This drop followed the U.S. Consumer Price Index (CPI) report, which indicated that inflation remained persistent in November despite a widespread decrease in gasoline and energy prices. This development diminishes the outlook for the Federal Reserve to initiate interest rate cuts as aggressively as market pricing, which raises the odds of a Fed-induced recession.

EUR/USD gained traction and rose toward 1.0800 early Tuesday.  The US Dollar struggles to find demand amid retreating US yields. Annual core inflation in the US is forecast to hold steady at 4% in November. Following a bearish start to the week, EUR/USD managed to find a foothold in the American trading hours and closed the day virtually unchanged on Monday. The pair gained traction and advanced toward 1.0800 early Tuesday amid retreating US yields but investors could refrain from betting on further US Dollar (USD) weakness ahead of the highly-anticipated November inflation report. In the absence of high-tier data releases, the relatively upbeat market mood made it difficult for the USD to continue to gather strength late Monday. Meanwhile, the high-yield at the latest 10-year US Treasury note auction came in at 4.29%, down from 4.51% in the previous auction, and caused US T-bond yields to edge lower, putting additional weight on the USD's shoulders. Later in the day, the US Bureau of Labor Statistics will release the Consumer Price Index (CPI) data for November. On a yearly basis, the CPI is forecast to rise 3.1%, at a slightly softer pace than the 3.2% increase recorded in October. The Core CPI, which excludes volatile food and energy prices, is expected to match the previous print by rising 4%. On a monthly basis, the CPI and the Core CPI are seen increasing by 0.1% and 0.3%, respectively. In case the monthly Core CPI print comes in below the market expectation, the initial reaction could cause the USD to weaken further. On the other hand, a stronger-than-forecast increase in this data could have the opposite impact on the currency's valuation. On Wednesday, the Federal Reserve (Fed) will announce monetary policy decisions and release the revised Summary of Economic Projections (SEP). A soft inflation report could attract dovish Fed bets. EUR/USD Technical Analysis The Relative Strength Index edged higher to 50 on the 4-hour chart, reflecting a loss of bearish momentum. On the upside, the pair faces stiff resistance at 1.0820 (200-day Simple Moving Average (SMA), Fibonacci 38.2% retracement of the latest uptrend). A daily close above this level could open the door for additional gains toward 1.0870 (100-period SMA on the 4-hour chart) and 1.0900 (psychological level, Fibonacci 23.6% retracement). 1.0750 (100-day SMA) aligns as critical support. A hot US inflation in November could trigger another leg lower in EUR/USD. If sellers flip this level into resistance, 1.0700 (Fibonacci 61.8% retracement, psychological level) could be seen as the next bearish target before 1.0660 (static level).

AUD/USD Current Price: 0.6567 A quiet start to a busy week that includes US CPI, FOMC, and Australian jobs. The AUD/USD is consolidating near the 20-DMA. Technical indicators offer no clear signs in the short term. The AUD/USD remains steady around 0.6560 as the week begins, which includes an FOMC meeting and the Australian jobs report. Price action is expected to pick up. In the short-term, the bias is mixed, with the US Dollar Index up but below the recent high of 104.30. Reserve Bank of Australia (RBA) Governor Michele Bullock will speak at the Australian Payment Network Summit in Sydney on Tuesday. In terms of economic data, the Westpac Consumer Confidence report is due, along with the National Australia Bank's Business Confidence survey. On Thursday, the Australian employment report will be released. The US Dollar Index rose on Monday but remained below last week's highs. A modest increase in US yields supported the Greenback. However, gains were limited as equity prices on Wall Street were posting gains. On Tuesday, the US Consumer Price Index (CPI) will be released, with a slowdown in the annual rate expected from 3.2% in October to 3.1% in November. These figures are unlikely to change the outcome of the FOMC meeting starting on Tuesday. The Fed is expected to keep rates unchanged. AUD/USD short-term technical outlook The AUD/USD is hovering around the 20-day Simple Moving Average (SMA) and the 200-day SMA. Technical indicators on the daily chart are not providing clear signals. Momentum is flat as it approaches the midpoint, while the Relative Strength Index (RSI) is moving south but also flattening. A daily close above 0.6600 would strengthen the short-term outlook for the Aussie, while a decline below 0.6540 could lead to a slide towards 0.6510 initially. On the 4-hour chart, the price is below the 20-period SMA, but technical indicators are flat. There is no clear bias in the short-term, and the price is likely to continue to consolidate around the current level until the next catalyst. Ahead of the Asian session, if the AUD/USD rises above 0.6575, it could test 0.6600, while a drop below 0.6550 may lead to further weakness. Support levels: 0.6550 0.6525 0.6485 Resistance levels: 0.6595 0.6625 0.6655 (This story was corrected on December 11 at 19:12 GMT to say that the US Dollar Index rose on Monday. A previous version of the story said that the USD declined.)

A lackluster start to the week but there's so much to come over the next few days which could determine how markets end the year and start 2024. The US will be front and center this week even as events also unfold elsewhere. The Fed decision on Wednesday is unlikely to be controversial but the forecasts, dot plot and press conference that accompany it may well be. Markets are very bullish in pricing in four interest rate cuts next year, the first likely coming in May, something the FOMC is unlikely to line up behind. The question is how much of a change we'll see from the September projections and to what extent the committee will push back against the markets. That may well depend on what the CPI report tells us tomorrow. The November inflation reading is expected to fall to 3.1% at the headline level but remain at 4% on a core basis. A setback here following the stronger jobs report on Friday could encourage the FOMC to dig their heels in a little, warning of upside risks and even, the door still being open to further hikes. That would be a very late and sharp pivot or markets being too optimistic with the first cut. And it's not just the Fed meeting this week. The ECB and BoE both announce their final interest rate decisions of the year on Thursday, with the former also releasing new forecasts and holding a press conference. Markets are currently pricing in a March rate cut for the ECB, one of five next year, so again we're looking at very bullish expectations and the question is whether the central bank will be more accommodating given the progress on inflation and the fact that the economy may already be in recession.

XAU/USD Current price: 1,982.29 US Dollar extends its positive momentum, with XAU/USD trading at fresh December lows. Looming central banks' decision and the US Consumer Price Index to set the market tone. XAU/USD bearish case became stronger after the pair pierced the $2,000 threshold. Spot Gold extends its slide on Monday, after losing the $2,000 threshold following the release of the United States (US) Nonfarm Payrolls (NFP) report last week. The US dollar surged after a stronger-than-anticipated report, although for the wrong reasons. Market participants did not buy the USD on the back of confidence in the Greenback's strength but as a safe due to fresh concerns about the future of the monetary policy and how it could affect the economy. The US Federal Reserve (Fed) has left interest rates on hold in its last two meetings, claiming previous actions need time to take effect. But there is a non-spoken reason: higher rates come with an increased risk of an economic setback. Growth in the country has proved resilient, yet policymakers are well aware a soft-landing is around the corner. Inflation has eased sharply from the records achieved in mid-2022, but it is still above the central bank's 2% goal. Finally, for inflationary pressures to remain subdued, the labor market needs to be more loose. That's precisely the opposite of what the NFP report showed, as the Unemployment Rate shrank to 3.7% in November. The US Unemployment rate stood between 3.4% and 3.9% throughout 2023. Such a decline keeps the door open for another rate hike, which increases the odds of a recession. Answers may come this week as the US will release the November Consumer Price Index (CPI) on Tuesday, while the Fed will announce its monetary policy decision on Wednesday, alongside fresh economic projections. XAU/USD short-term technical outlook XAU/USD is sharply down for a second consecutive day and seems poised to extend its slump. Technical readings in the daily chart reflect the strong selling interest after the pair broke below a bearish 20 Simple Moving Average (SMA), which anyway maintains its bullish slope. The longer moving averages lack directional strength far below the current level, establishing a target zone between $1,930 and $1,950. Finally, technical indicators gain downward traction and crossing their midlines into negative territory, in line with lower lows. In the near term, and according to the 4-hour chart, the risk also skews to the downside. XAU/USD accelerated its slump after breaking below a flat 200 SMA, while the 20 SMA crosses below the 100 SMA above the larger one, another sign of increased selling interest. Technical indicators, in the meantime, head firmly south around oversold readings without signs of downward exhaustion. Gold bottomed at $1,976.26 on November 20, the level to break to confirm a bearish continuation in the upcoming sessions. Support levels: 1,976.26 1,959.40 1,946.00 Resistance levels: 1,994.40 2,001.70 2,014.20