XAUUSD | Price Action | New perspective | follow-up details

Despite the less-than-ideal macroeconomic conditions, the gold bull is still putting up a fight. The recent comments made by Powell regarding potential rate hikes have pushed gold to its lowest point in three months. During his semi-annual testimony on the economy, Powell hinted at the likelihood of more rate increases in the coming months, even though the Fed decided to pause on another hike last week. The rise in U.S. interest rates increases the opportunity cost of holding gold.

As a result, the gold price experienced a retreat, driven by the strength of the U.S. Dollar Index, breaking below the crucial $1,935 level that had been a strong buying point over the past four weeks. This breakdown was marked by bearish engulfing candles and a notable increase in trading volume. However, buying pressure around the $1,910 level led to a retest of $1,935, creating a situation where the direction of future price action is still uncertain.

In this video, we will conduct a thorough analysis of the XAUUSD market, considering both bullish and bearish sentiments, as well as accumulation and distribution patterns. By examining past price patterns, market behavior, recurring trends, and significant support and resistance levels, we aim to gain valuable insights into the potential actions of buyers and sellers in the upcoming week(s).

It is important to highlight the key level at $1,935, which will play a crucial role in determining the direction of price action this week. The reactions observed within this zone on Monday will provide valuable indicators, particularly for the first half of the week. Get ready to seize the opportunities that lie ahead! Make sure to stay tuned for updates that will guide our trading decisions throughout the week.

Disclaimer Notice:
Please be aware that margin trading in the foreign exchange market, including commodity trading, CFDs, stocks, and other instruments, carries a high level of risk and may not be suitable for all investors. The content of this speculative material, including all data, is provided by me for educational purposes only and to assist in making independent investment decisions. All information presented here is for reference purposes only, and I do not assume any responsibility for its accuracy.

It is important that you carefully evaluate your investment experience, financial situation, investment objectives, and risk tolerance level. Before making any investment, it is advisable to consult with your independent financial advisor to assess the suitability of your circumstances.

Please note that I cannot guarantee the accuracy of the information provided, and I am not liable for any loss or damage that may directly or indirectly result from the content or the receipt of any instructions or notifications associated with it.

Remember that past performance is not necessarily indicative of future results. Keep this in mind while considering any investment opportunities.

Comment:

The presence of a bullish gap at the market opening provides valuable insights into the institutional sentiment in the Gold market. The ongoing consolidation between the price levels of $1,928.50 and $1,922 could indicate market indecision or a potential buildup for a strong upward movement. However, I strongly believe that the current market is inclined towards the upside, considering the halt of the bearish momentum from last week around the $1,910 zone. A breakout or retest of the descending trendline at $1,928.50 would further validate the strength of buyers at this point. Nevertheless, it is important to note that recent comments by Powell regarding possible rate hikes are still affecting the market and may potentially generate positive momentum for the Greenback. We will exercise patience and allow our trade structures to mature before making any decisions. Stay tuned for updates.

Good Morning

Trade active:

Fallout from our live session this morning; buy position triggered, secure position now.

Trade closed manually:

Buy position closed at break-even; sell position at breakdown/retest of $1,928.50 level. Update coming up soon

Comment:

Although there has been a slight recovery following the losses of the previous week, the trading activity has remained within a limited range since the beginning of this week. Market participants find themselves in a state of indecision. However, there is a bearish inclination with potential selling opportunities emerging below the $1,922 level. We are closely monitoring the price movements for any subtle signals, particularly in anticipation of the release of Durable Goods Orders and Nondefense Capital Goods Orders ex Aircraft from the US economic calendar. We are optimistic about the possibility of favorable developments.

Trade active:

Secure sell posiion

Trade active:

The selling pressure persists leading up to the ECB's annual forum in Sinatra. We maintain a secured position while seeking further opportunities at a potential breakdown/retest of the $1,910 zone.

Good Morning

Trade active:

#XAUUSD

UPDATE

The third position triggered at the breakdown of the $1,910 level; time to secure positions

Trade active:

As buying pressure emerges, it seems that the price action is undergoing a transition into a reversal pattern. We now have two new structures to consider for our trading activities: a descending trendline and a level at $1,913.50. Moving forward, we will confirm buy positions at the breakout/retest retests of these structures. Conversely, if the price drops below $1,905.50, we will initiate additional sell positions. I will provide an update shortly before I sign off for the night.

Trade active:

Please ensure that all existing sell positions are secured as the price activates another sell position upon breaking down the $1,905.50 level. It's important to acknowledge the emergence of buying pressure around the $1,905.50/$1,902.50 zone, as sustained pressure could potentially lead to a breakout/retest of both the descending trendline and the $1,910 level, creating opportunities for buying. We will delve into this topic extensively in our upcoming live session.

Good Morning

Trade closed: stop reached:

Stopped out of the buy position in a loss as we have sell stop order at $1,920 triggered

Trade active:

76pips in profit; time to secure position as we look out for more selling opportunities.

Trade active:

Following the exit from the sell position with a modest profit, we observed a period of price action volatility that resulted in a bullish engulfing candle. However, the market seems to be stabilizing, and I maintain a bullish bias, particularly if there is a breakout above the $1,910 zone, which is marked by the ascending trendline we have highlighted. This trendline will serve as our guide to monitor the potential bullish momentum. Nevertheless, we should be attentive to any potential breakdown of this trendline, as it would indicate a shift in the market, prompting us to consider selling opportunities.

Comment:

In addition to the volatility experienced yesterday, it is evident that the market has been trading within a range, with price action confined between $1,913 and $1,902, underscoring the prevailing uncertainty. From a technical perspective, it is advisable to exercise patience and await indications of trading opportunities arising from a breakout or breakdown of this range. However, given that the price has seemingly broken below the highlighted red trendline, we might be anticipating selling opportunities. Nevertheless, we maintain a state of alertness and await substantial confirmations before making any decisions. An update will be provided shortly.

Good Morning

Trade active:

Fall out from our live session this morning

secure sell positions

Trade closed manually:

Once the sell position was closed at the break-even point, we have identified a new trading setup on the 1-hour timeframe. This setup, represented by the highlighted trendline, will serve as our guide for today's trading activities.

Trade active:

Buy position triggered; secure position as we look out for more buying opportunities.

Trade active:

UPDATE

Comment:

Over 300 pips in profit 3 buy positions at the moment. Secure all buy positions at above third entry and I think I am done for today on the XAUUSD.

Have a great weekend everyone!