XAUUSD-Gold - Technical Analysis
yesterday after FOMC Gold price attracts some buying for the fourth straight day on Thursday and moves back closer to over a two-week high, around the 2056 area touched the previous day. Gold price was already up before the FOMC and after that it cant hold his main resistance 2056 and down to 2040 area which is also looking weak atm. The US Dollar (USD) struggles to capitalize on Wednesday's post-FOMC bounce from a one-week trough amid a further decline in the US Treasury bond yields. This, along with persistent geopolitical risks stemming from conflicts in the Middle East and China's economic woes, turn out to be a key factor lending some support to the safe-haven commodity. That said, the Federal Reserve's (Fed) less dovish outlook on rates might cap the non-yielding yellow metal.
Now Investors look to Thursday's rather busy economic docket, highlighting the release of the flash Eurozone consumer inflation figures and the US ISM Manufacturing PMI, for some meaningful impetus. Furthermore, the Bank of England's (BoE) monetary policy decision might infuse some volatility in the markets. Apart from this, the US bond yields, the USD price dynamics and the broader risk sentiment might contribute to producing short-term trading opportunities around the Gold price. The market focus will then shift to the closely-watched US monthly employment details, popularly known as the Nonfarm Payrolls (NFP) report on Friday.
From a technical perspective, strength beyond the 2040-2042 supply zone could be seen as a fresh trigger for bulls. Moreover, oscillators on the daily chart have just started gaining positive traction and support prospects for additional gains. That said, any further move up beyond the overnight swing high, around the 2056 area, is likely to confront some resistance near the 2065-2066 zone ahead of the 2078-2079 region or the YTD peak. Some follow-through buying should allow the Gold price to aim back towards reclaiming the 2100 round figure and climb further towards the next relevant hurdle near the 2020 area.
On the other side, the 50-day Simple Moving Average (SMA), currently pegged near the 2031-2,030 area, now seems to act as an immediate strong support and a key pivotal point. A convincing break below the said support could drag the Gold price to the 2012-2010 area en route to the 2000 psychological mark. Some follow-through selling might shift the bias in favor of bearish traders and expose the 100-day SMA support near the 1980 region, before the XAU/USD eventually drops to the very important 200-day SMA, near the 1965-1964 area.
Most Watchable areas:
2055-2046 for upward movement
2016-2002 for downward movement
Note
Please never follow anyone blindly and always remember following key points:
1- First and Last thing in trading is patience.
2- Risk management in trading is a Key so use your money accordingly.
3- Please Don't think I'm always right. I could be wrong, same as every other trader.
4- I always posted my thoughts, not financial advice.
5- Please use your mind and try to get knowledge about market. It will help you in future
Thank you and Good Luck!
Now Investors look to Thursday's rather busy economic docket, highlighting the release of the flash Eurozone consumer inflation figures and the US ISM Manufacturing PMI, for some meaningful impetus. Furthermore, the Bank of England's (BoE) monetary policy decision might infuse some volatility in the markets. Apart from this, the US bond yields, the USD price dynamics and the broader risk sentiment might contribute to producing short-term trading opportunities around the Gold price. The market focus will then shift to the closely-watched US monthly employment details, popularly known as the Nonfarm Payrolls (NFP) report on Friday.
From a technical perspective, strength beyond the 2040-2042 supply zone could be seen as a fresh trigger for bulls. Moreover, oscillators on the daily chart have just started gaining positive traction and support prospects for additional gains. That said, any further move up beyond the overnight swing high, around the 2056 area, is likely to confront some resistance near the 2065-2066 zone ahead of the 2078-2079 region or the YTD peak. Some follow-through buying should allow the Gold price to aim back towards reclaiming the 2100 round figure and climb further towards the next relevant hurdle near the 2020 area.
On the other side, the 50-day Simple Moving Average (SMA), currently pegged near the 2031-2,030 area, now seems to act as an immediate strong support and a key pivotal point. A convincing break below the said support could drag the Gold price to the 2012-2010 area en route to the 2000 psychological mark. Some follow-through selling might shift the bias in favor of bearish traders and expose the 100-day SMA support near the 1980 region, before the XAU/USD eventually drops to the very important 200-day SMA, near the 1965-1964 area.
Most Watchable areas:
2055-2046 for upward movement
2016-2002 for downward movement
Note
Please never follow anyone blindly and always remember following key points:
1- First and Last thing in trading is patience.
2- Risk management in trading is a Key so use your money accordingly.
3- Please Don't think I'm always right. I could be wrong, same as every other trader.
4- I always posted my thoughts, not financial advice.
5- Please use your mind and try to get knowledge about market. It will help you in future
Thank you and Good Luck!
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