Hello dear readers, and welcome to guriforex.com. Today, we bring you a comprehensive technical analysis and trading signals for XAUUSD (gold). Let’s dive right into the analysis.
Today’s XAUUSD (Gold) Technical Analysis and Trading Signals by Guriforex:
In yesterday’s fourth session, XAUUSD (Gold) continued its recovery during the US session following the release of the Consumer Price Index (CPI) data. This recovery signaled a positive sentiment among traders, as the CPI news often has significant implications for the market. However, this morning, the Federal Open Market Committee (FOMC) meeting caused a sharp decline in XAUUSD (gold) prices. The outcome of the meeting highlighted the market’s reaction to the Federal Reserve’s monetary policy decisions, which often influence gold prices. The sharp drop indicates that sellers still hold the upper hand at this moment, showcasing the ongoing volatility in the gold market.
Currently, our strategy involves looking for selling opportunities at specific levels. We are focusing on the upper boundary of the price channel as a potential selling point. This approach involves waiting for the price to reach the upper limit of the channel before considering a sell. Additionally, we are monitoring for situations where the price breaks below the channel and then rebounds below it. These scenarios provide potential entry points for selling. The key selling zone we are targeting is around the 231x price level, which we believe could offer favorable conditions for sellers.
From a fundamental perspective, news about the Federal Reserve plays a crucial role in shaping market expectations. The Federal Reserve is anticipated to implement two interest rate cuts this year. Such a move could potentially weaken the USD, as lower interest rates tend to reduce the currency’s attractiveness to investors. A weaker USD could, in turn, be beneficial for the price of gold, as gold is often seen as a safe-haven asset that investors turn to in times of economic uncertainty.
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