Welcome to today's strategy analysis, where we revisit and forecast the next moves for XAUUSD, after a day of significant fluctuation.
Current Analysis:
XAUUSD witnessed a considerable decline yesterday, progressing through a descending triangle pattern and eventually breaking below the $2075 level. Despite this, gold quickly adjusted, forming an ascending triangle pattern and currently trades around $2168. This occurred after surpassing resistance levels at $2179 and $2177, although it ultimately saw a slight decrease of 0.27% for the day.
Insights on Price Increase Causes:
Scenario 1: The weakening of the US dollar, as the market anticipates the Federal Reserve (FED) might cut interest rates by June 2024 despite rising inflation in the US. This scenario benefits gold prices.
Scenario 2: Some analysts predict a spike in gold prices if the FED decides to cut rates. If this does not happen, high inflation fears could push gold prices higher.
Scenario 3: Political tensions and military conflicts, such as the Russia-Ukraine situation, keep the demand for safe-haven assets like gold high.
Forecast and Strategy:
Looking at the 1-hour chart, we observe an increase in trading volume and price stabilization after a sharp decline, touching the EMA 34.89 line. XAUUSD finds strong support around the $2160 level. If it breaks below this support, we could witness a significant price drop. However, maintaining above this level could lead to price increases. A recovery is anticipated after touching the ascending triangle pattern boundary. An adjustment might occur after breaking the fake level of $2175, and consolidation above this level indicates the market is ready for a recovery.
Conclusion:
In the current context, closely monitoring market developments and external influencing factors will be key to making wise investment decisions. Keep an eye on announcements from the FED, global political situations, and currency market movements to adjust your strategy accordingly.
Scenario 3: Escalating political tensions due to the Russia-Ukraine military conflict are maintaining the demand for safe-haven assets like gold. The conditions are favorable for gold to rally.
Regarding the new prospects for XAUUSD: According to the 1-hour chart, the volume is increasing, and the price has stopped after a sharp decline, touching the EMA 34,89. XAUUSD is currently receiving strong support around 2160 USD. However, if it breaks below this level, it could lead to a significant price decrease, while maintaining it would result in an increase. It is expected that the price will recover after touching the ascending triangle channel. I anticipate a correction after breaking the false 2175 USD level. Consolidation above this level indicates that the market is ready to rally.
Current Analysis:
XAUUSD witnessed a considerable decline yesterday, progressing through a descending triangle pattern and eventually breaking below the $2075 level. Despite this, gold quickly adjusted, forming an ascending triangle pattern and currently trades around $2168. This occurred after surpassing resistance levels at $2179 and $2177, although it ultimately saw a slight decrease of 0.27% for the day.
Insights on Price Increase Causes:
Scenario 1: The weakening of the US dollar, as the market anticipates the Federal Reserve (FED) might cut interest rates by June 2024 despite rising inflation in the US. This scenario benefits gold prices.
Scenario 2: Some analysts predict a spike in gold prices if the FED decides to cut rates. If this does not happen, high inflation fears could push gold prices higher.
Scenario 3: Political tensions and military conflicts, such as the Russia-Ukraine situation, keep the demand for safe-haven assets like gold high.
Forecast and Strategy:
Looking at the 1-hour chart, we observe an increase in trading volume and price stabilization after a sharp decline, touching the EMA 34.89 line. XAUUSD finds strong support around the $2160 level. If it breaks below this support, we could witness a significant price drop. However, maintaining above this level could lead to price increases. A recovery is anticipated after touching the ascending triangle pattern boundary. An adjustment might occur after breaking the fake level of $2175, and consolidation above this level indicates the market is ready for a recovery.
Conclusion:
In the current context, closely monitoring market developments and external influencing factors will be key to making wise investment decisions. Keep an eye on announcements from the FED, global political situations, and currency market movements to adjust your strategy accordingly.
Scenario 3: Escalating political tensions due to the Russia-Ukraine military conflict are maintaining the demand for safe-haven assets like gold. The conditions are favorable for gold to rally.
Regarding the new prospects for XAUUSD: According to the 1-hour chart, the volume is increasing, and the price has stopped after a sharp decline, touching the EMA 34,89. XAUUSD is currently receiving strong support around 2160 USD. However, if it breaks below this level, it could lead to a significant price decrease, while maintaining it would result in an increase. It is expected that the price will recover after touching the ascending triangle channel. I anticipate a correction after breaking the false 2175 USD level. Consolidation above this level indicates that the market is ready to rally.
Comment:
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📈 Forex & XAU/USD Channel:
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📈 Forex & XAU/USD Channel:
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