XAUUSD June 13, 2024 After news of CPI and Fed interest rates
Yesterday we had the Fed's announcement about the CPI index, we saw that this index was 0.3 to 0.4 lower than the previous period. This is the result when the Fed implemented tightening monetary policy in the past.
After that, the FOMC meeting announced that interest rates would continue to remain at 5.5%.
- This made gold yesterday, after the announcement of CPI increased to 2340, then the news that interest rates remained high at 5.5% continued to push gold prices down.
Look at the H1 chart
- Yesterday's pullback to the 2340 price range reached the 50% Fibo level, which is a level that has surpassed the usual 38% level of wave 4. This suggests to us a more complex wave model
- For now, at this position, we observe the price zones to confirm the formation model, which are the price zone 2307 and the price zone 2287.
- If the price holds above the 2307 area, then we will have wave 5 formed at the 2287 area, meaning wave C during the ABC correction looks like D1 has completed. Then we have wave C higher than bottom B. Looking at D1, we see that a new complex correction model can form (I will update later).
- If the price breaks through the 2287 area, we have wave 5 targets as on the chart we mentioned before.
After that, the FOMC meeting announced that interest rates would continue to remain at 5.5%.
- This made gold yesterday, after the announcement of CPI increased to 2340, then the news that interest rates remained high at 5.5% continued to push gold prices down.
Look at the H1 chart
- Yesterday's pullback to the 2340 price range reached the 50% Fibo level, which is a level that has surpassed the usual 38% level of wave 4. This suggests to us a more complex wave model
- For now, at this position, we observe the price zones to confirm the formation model, which are the price zone 2307 and the price zone 2287.
- If the price holds above the 2307 area, then we will have wave 5 formed at the 2287 area, meaning wave C during the ABC correction looks like D1 has completed. Then we have wave C higher than bottom B. Looking at D1, we see that a new complex correction model can form (I will update later).
- If the price breaks through the 2287 area, we have wave 5 targets as on the chart we mentioned before.
Comment:
With the hawkish FED on interest rates boosting the USD exchange rate, today's gold price witnessed a sharp decline in the early morning trading session.
Comment:
Xauusd after a series of important news from the Fed
Yesterday's news announced to us
First, the ppi decrease combined with the unemployment benefits application index increased. Combined with a decrease in CPI, this is beneficial for Gold to increase because the economic situation seems to be weakening, putting pressure on the Fed to reduce interest rates. However, Nonfarm data, specifically the employment index, has increased sharply in the recent period, which is the motivation for the Fed to keep the current interest rate at 5.9%. This is the reason why PPI news, although beneficial for Gold, cannot last long.
Look at H1
- We are having the idea of an abc correction model. In which we expect wave c to complete
- In front of us we have 2 important price zones: 2307 and 2287, these are 2 price zones that help us determine the direction of the price.
- If the price breaks out at 2307, this is a necessary condition for the orange wave c to complete. Then we have 2 target price zones of wave c: 2350.4 and 2364.6. These are 2 areas where we can look for Sell orders
- If the price breaks out below 2287, this is a necessary condition for the price to fall to the target zone of wave 5, which is 2264. This is the area where we look for a Buy order.
Yesterday's news announced to us
First, the ppi decrease combined with the unemployment benefits application index increased. Combined with a decrease in CPI, this is beneficial for Gold to increase because the economic situation seems to be weakening, putting pressure on the Fed to reduce interest rates. However, Nonfarm data, specifically the employment index, has increased sharply in the recent period, which is the motivation for the Fed to keep the current interest rate at 5.9%. This is the reason why PPI news, although beneficial for Gold, cannot last long.
Look at H1
- We are having the idea of an abc correction model. In which we expect wave c to complete
- In front of us we have 2 important price zones: 2307 and 2287, these are 2 price zones that help us determine the direction of the price.
- If the price breaks out at 2307, this is a necessary condition for the orange wave c to complete. Then we have 2 target price zones of wave c: 2350.4 and 2364.6. These are 2 areas where we can look for Sell orders
- If the price breaks out below 2287, this is a necessary condition for the price to fall to the target zone of wave 5, which is 2264. This is the area where we look for a Buy order.
