XAU/USD analysis how the market seems to be moving
Hello everyone , as we all know the market action discounts everything :)
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The gold price has drop in the last months from the range of 1910.34 and today we see the price sitting at 1823.87 , after july had started we can see that the market is trading in a ascending triangle pattern with the price being near the higher zone of the triangle , if a breakout would happen to that area it could confirm the movement of the Gold market for the next few weeks.
1 scenario:
If the price breakout the resistance line at 1832.81 and closes above it we could be seeing a bullish movement start and pushing the gold market price up back the the 1910 range.
2 scenario:
If the price drops it will most likely hit the support like at 1789.65 and what happens between the bears and the bulls at that point will confirm the movement of the market in the next few weeks , if the bears were able to hold control over the market then the price will most likely drop even more and hit the support zone at 1756.210 . but if the bears were able to gain control then we will most likely see a bounce back in the price.
technical indicators showing this on a daily chart :
1_The market price moving above the MA and EMA (bullish sign)
2_The RSI is at 58.68 showing strengths in the market with no divergences (bullish sign)
3_The MACD is in the negative showing bearish sign but a positive crossover has happened so it could be the push that the gold market need to go back up .
4_The ADX is at 10.297 showing that there are no strong trend is present but we do have a positive crossover between DI+ and DI- which could indicate a bounce up if the market gain more support from the bears.
5_STOCH is under a positive crossover between K% and D% with K% hitting overbought zone
Support & Resistance points :
support Resistance
1) 1789.658 1) 1832.818
2) 1770.873 2) 1877.790
3) 1756.210 3) 1910.349
Fundamental point of view :
Gold consolidated the overnight strong gains back closer to monthly tops and oscillated in a narrow trading band, around the $1,825-30 region through the first half of the European session. Worries about the potential economic fallout from the fast-spreading Delta variant of the coronavirus continued weighing on investors' sentiment. This turned out to be one of the key factors that continued underpinning the safe-haven XAU/USD.
Meanwhile, the risk-off impulse in the markets triggered a fresh leg down in the US Treasury bond yields. This comes on the back of the Fed Chair Jerome Powell's dovish remarks on Wednesday and further acted as a tailwind for the non-yielding gold. Apart from this, the prevalent selling bias surrounding the US dollar extended some additional support to the dollar-denominated commodity, though the lack of any follow-through buying warrants caution for bulls.
Nevertheless, gold remains on track to record its biggest weekly gains since May 21 and seems poised to appreciate further amid signs that the Fed will stick to its ultra-lose policy stance for a longer period. The US central bank on Wednesday acknowledged that the economy has made progress towards the maximum employment and price stability goals. However, the Fed Chair Jerome Powell took a dovish turn at the post-meeting press conference.
Powell emphasised that they were some ways away from substantial progress on jobs. He was also cautious about tapering and said that policymakers discussed some details but it will take a few more meetings to get into it. The market speculations were further reinforced by Thursday's disappointing US GDP report, which showed that the world's largest economy expanded by 6.5% annualized pace in the second quarter as against the 8.5% growth anticipated. according to FXstreet
This is my personal opinion done with technical analysis of the market price and research online from fundamental analysts for The Fundamental point of view , not financial advice.
If you have any questions please ask and have a great day !!
Thank you for reading.
_________________________________Make sure to Like and Follow if you like the idea_________________________________
The gold price has drop in the last months from the range of 1910.34 and today we see the price sitting at 1823.87 , after july had started we can see that the market is trading in a ascending triangle pattern with the price being near the higher zone of the triangle , if a breakout would happen to that area it could confirm the movement of the Gold market for the next few weeks.
1 scenario:
If the price breakout the resistance line at 1832.81 and closes above it we could be seeing a bullish movement start and pushing the gold market price up back the the 1910 range.
2 scenario:
If the price drops it will most likely hit the support like at 1789.65 and what happens between the bears and the bulls at that point will confirm the movement of the market in the next few weeks , if the bears were able to hold control over the market then the price will most likely drop even more and hit the support zone at 1756.210 . but if the bears were able to gain control then we will most likely see a bounce back in the price.
technical indicators showing this on a daily chart :
1_The market price moving above the MA and EMA (bullish sign)
2_The RSI is at 58.68 showing strengths in the market with no divergences (bullish sign)
3_The MACD is in the negative showing bearish sign but a positive crossover has happened so it could be the push that the gold market need to go back up .
4_The ADX is at 10.297 showing that there are no strong trend is present but we do have a positive crossover between DI+ and DI- which could indicate a bounce up if the market gain more support from the bears.
5_STOCH is under a positive crossover between K% and D% with K% hitting overbought zone
Support & Resistance points :
support Resistance
1) 1789.658 1) 1832.818
2) 1770.873 2) 1877.790
3) 1756.210 3) 1910.349
Fundamental point of view :
Gold consolidated the overnight strong gains back closer to monthly tops and oscillated in a narrow trading band, around the $1,825-30 region through the first half of the European session. Worries about the potential economic fallout from the fast-spreading Delta variant of the coronavirus continued weighing on investors' sentiment. This turned out to be one of the key factors that continued underpinning the safe-haven XAU/USD.
Meanwhile, the risk-off impulse in the markets triggered a fresh leg down in the US Treasury bond yields. This comes on the back of the Fed Chair Jerome Powell's dovish remarks on Wednesday and further acted as a tailwind for the non-yielding gold. Apart from this, the prevalent selling bias surrounding the US dollar extended some additional support to the dollar-denominated commodity, though the lack of any follow-through buying warrants caution for bulls.
Nevertheless, gold remains on track to record its biggest weekly gains since May 21 and seems poised to appreciate further amid signs that the Fed will stick to its ultra-lose policy stance for a longer period. The US central bank on Wednesday acknowledged that the economy has made progress towards the maximum employment and price stability goals. However, the Fed Chair Jerome Powell took a dovish turn at the post-meeting press conference.
Powell emphasised that they were some ways away from substantial progress on jobs. He was also cautious about tapering and said that policymakers discussed some details but it will take a few more meetings to get into it. The market speculations were further reinforced by Thursday's disappointing US GDP report, which showed that the world's largest economy expanded by 6.5% annualized pace in the second quarter as against the 8.5% growth anticipated. according to FXstreet
This is my personal opinion done with technical analysis of the market price and research online from fundamental analysts for The Fundamental point of view , not financial advice.
If you have any questions please ask and have a great day !!
Thank you for reading.