2023-05-24 • Updated
Let's dive into the world of gold. Currently, the price of gold, represented by XAUUSD, is stuck in indecision, hovering around the $1,975 mark. The market is anxiously awaiting two important factors: the release of the Federal Reserve's meeting minutes and the extension of the US debt ceiling. These upcoming events have stirred some mixed feelings among traders, leading to a cautious mood. On the one hand, there are hawkish speculations about the Fed's stance, which could weigh on gold prices.
On the other hand, hopes of avoiding a US default have supported the bearish sentiment surrounding gold. The recent decline in US Treasury bond yields and the US Dollar's retreat due to the deadlock in debt ceiling negotiations have also influenced gold's performance. The market sentiment remains sluggish as traders brace themselves for these critical events. Stay tuned, and keep an eye on how these factors unfold.
The chart above is a line chart representing the price action on the US Dollar chart from the Daily timeframe. I have deliberately used the line chart because it is one of the easiest ways to figure out key levels of support and resistance and draw pivot zones. The pivot zone on the daily timeframe, as shown above, is based on the price levels with the most reactions. Let’s take a look at the candlestick chart for confirmation.
From the price action on the H4 timeframe of the US Dollar, I could locate a drop-base-drop supply zone right in the middle of the pivot zone we marked earlier from the daily timeframe. Based on this criterion and the descending order of arrangement of the moving averages on the daily timeframe, I sense a likelihood of a bearish reaction from the marked zone. Now let’s see what impact this would likely have on the price of Gold (XAUUSD).
If the US Dollar comes under excessive bearish pressure from the areas I highlighted earlier, the outcome will lead to bullish price action on the Gold charts. The confirmations I have for this sentiment include; the pivot zone, ascending order of the moving averages array, and the drop-base-rally demand zone from the area marked with the horizontal arrow.
Analyst’s Expectations:
Direction: Bullish
Target: $2005.60
Invalidation: $1953.74
CONCLUSION
The trading of CFDs comes at a risk. Thus, to succeed, you have to manage risks properly. To avoid costly mistakes while you look to trade these opportunities, be sure to do your due diligence and manage your risk appropriately.
You can access more of such trade ideas and prompt market updates on the telegram channel.
Bearish scenario: Sell below 2200 / 2194 ... Nearest bullish scenario: Buy above 2197... Bullish scenario after retracement: Consider buys around each indicated demand zone
Bullish scenario: Intraday buys above 2160.00 with TP: 2171 and TP2: 2177 // Bearish scenario: Sells below 2177 with TP1: 2150, TP2: 2142, and 2126
This article uses price action and volume profile techniques to address a fundamental and technical perspective based on the daily chart analysis of spot gold (XAUUSD).
Jerome H. Powell, the Federal Reserve chair, stated that the central bank can afford to be patient in deciding when to cut interest rates, citing easing inflation and stable economic growth. Powell emphasized the Fed's independence from political influences, particularly relevant as the election season nears. The Fed had raised interest rates to 5.3 ...
Hello again my friends, it’s time for another episode of “What to Trade,” this time, for the month of April. As usual, I present to you some of my most anticipated trade ideas for the month of April, according to my technical analysis style. I therefore encourage you to do your due diligence, as always, and manage your risks appropriately.
Bearish scenario: Sell below 1.0820 / 1.0841... Bullish scenario: Buy above 1.0827...
FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.
Your request is accepted.
A manager will call you shortly.
Next callback request for this phone number
will be available in
If you have an urgent issue please contact us via
Live chat
Internal error. Please try again later
Don’t waste your time – keep track of how NFP affects the US dollar and profit!
|
