US Inflation Jumped, Gold Keeps Rallying

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EUR/USD has dropped sharply to the low unseen since July 2020. The reason was the higher-than-expected US inflation figures that shocked investors as the annual Inflation Rate rocketed to the 31-year high of 6.2%.
Concerns about inflation pressures reinforced expectations of interest-rate hikes in the US and pushed the USD up to a one-year high. A more hawkish outlook can press stocks that are near record highs these days.
China’s Evergrande made an interest payment of $148 million on Wednesday, avoiding a default third time in a row. It has mildly improved the market sentiment and stopped the EUR/USD bears.
Meanwhile, gold keeps rising! It has surged above $1850 for the first time since June. Will we see gold at $1900 soon?
Australia has revealed poor labor data. Employment Change: -46.3K (forecast: 50.0K), Unemployment Rate: 5.2% (forecast: 4.8%). AUD/USD dropped initially but then reverse up.

Tech analysis

Gold has broken above $1850! If it manages to overcome the next resistance level at the 50% Fibonacci retracement level of $1870, it may jump to the psychological mark of $1900. Support levels are $1845 and the 38.2% Fibo level of $1830.

AUD/USD is moving inside the ascending channel. It is getting closer to the lower line, so the reverse-up should occur soon. If it jumps above the 50- and 100-day moving averages of 0.7360, the way up to the next resistance level of 0.7450 will be open.

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Author: FBS Analyst Team

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