On Friday, XAUUSD bounced off crucial support at 1820. From now on, we expect the price to be bullish after we retest the 1820 level, with our main target being 1923.
Economic News
The following economic news from last week is relevant to XAUUSD:
US Nonfarm Payrolls: The US economy added 372,000 jobs in August, beating expectations of 300,000. The unemployment rate remained unchanged at 3.5%.
US CPI: US consumer inflation fell to 8.5% in July from 9.1% in June. This was the first time in over a year that inflation had cooled.
US PPI: US producer inflation fell to 8.5% in July from 9.8% in June. This was the first time in over a year that producer inflation had fallen.
Technical Analysis
The strong US jobs data and the cooling of inflation suggest that the US economy is still resilient. This is good news for the dollar, which is likely to remain strong in the near term. However, the fact that inflation is still high means that the Federal Reserve is likely to continue raising interest rates aggressively.
Rising interest rates are typically negative for gold, as they make it more expensive to hold non-yielding assets. However, gold can also benefit from rising interest rates if they lead to fears of a recession.
Based on the current economic news, we expect XAUUSD to retest the 1820 level before moving higher. If the 1820 level holds, we expect the price to continue its bullish momentum towards our main target of 1923.
Entry: 1820
Stop Loss: 1800
Target: 1923
Risk Management
It is important to note that all trading involves risk. The above trading idea is just a suggestion and should not be taken as financial advice. It is important to do your own research and understand the risks involved before placing any trades.
Disclaimer
I am not a financial advisor and this is not financial advice.
Economic News
The following economic news from last week is relevant to XAUUSD:
US Nonfarm Payrolls: The US economy added 372,000 jobs in August, beating expectations of 300,000. The unemployment rate remained unchanged at 3.5%.
US CPI: US consumer inflation fell to 8.5% in July from 9.1% in June. This was the first time in over a year that inflation had cooled.
US PPI: US producer inflation fell to 8.5% in July from 9.8% in June. This was the first time in over a year that producer inflation had fallen.
Technical Analysis
The strong US jobs data and the cooling of inflation suggest that the US economy is still resilient. This is good news for the dollar, which is likely to remain strong in the near term. However, the fact that inflation is still high means that the Federal Reserve is likely to continue raising interest rates aggressively.
Rising interest rates are typically negative for gold, as they make it more expensive to hold non-yielding assets. However, gold can also benefit from rising interest rates if they lead to fears of a recession.
Based on the current economic news, we expect XAUUSD to retest the 1820 level before moving higher. If the 1820 level holds, we expect the price to continue its bullish momentum towards our main target of 1923.
Entry: 1820
Stop Loss: 1800
Target: 1923
Risk Management
It is important to note that all trading involves risk. The above trading idea is just a suggestion and should not be taken as financial advice. It is important to do your own research and understand the risks involved before placing any trades.
Disclaimer
I am not a financial advisor and this is not financial advice.
Comment:
1872 successfully reached
Trade closed: target reached:
Our target 1923 successfully reached.