XAUUSD: The next trend and market development!
Updated
Technical analysis (basic)
The XAU/USD is currently hovering around $1,945, marking its second consecutive day of decline. According to the technical readings in the daily chart, the risk is leaning towards the downside. The pair fell below the bearish EMA89 and is slowly approaching a directionless EMA34, which is currently providing support at around 1,933.70. The Momentum indicator has slightly improved but is still in the red, while the Relative Strength Index (RSI) indicator is showing a downward trend near 30, suggesting that the pair may continue to move lower.
Market Comments
The Consumer Price Index has slightly decreased, resulting in a lower likelihood of the Federal Reserve implementing new rate hikes. This development is welcomed by the markets. There is a strong argument for taking a break. In addition, investors are already predicting a higher possibility of rate reductions, which is negatively impacting the value of the US dollar.
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The XAU/USD is currently hovering around $1,945, marking its second consecutive day of decline. According to the technical readings in the daily chart, the risk is leaning towards the downside. The pair fell below the bearish EMA89 and is slowly approaching a directionless EMA34, which is currently providing support at around 1,933.70. The Momentum indicator has slightly improved but is still in the red, while the Relative Strength Index (RSI) indicator is showing a downward trend near 30, suggesting that the pair may continue to move lower.
Market Comments
The Consumer Price Index has slightly decreased, resulting in a lower likelihood of the Federal Reserve implementing new rate hikes. This development is welcomed by the markets. There is a strong argument for taking a break. In addition, investors are already predicting a higher possibility of rate reductions, which is negatively impacting the value of the US dollar.
PLAN TRADE IN THE INTRO
thank you TradingView
Note
Gold pares weekly losses at the lowest levels in two months as markets await the key US data, as well as the debt ceiling deal. The precious metal’s latest rebound could be linked to the US Dollar’s retreat from a multi-day top as the latest headlines suggest that the policymakers still have sizeable differences to cut to avoid the US default.Note
Retweet: THE FED'S BALANCE SHEET UPDATE⚠️ In the week ending May 24th: 1. The Federal Reserve's total balance sheet DECREASED by $20.5 billion, now standing at $8.436 trillion. Total assets held by the Fed stands now $94 billion above March 8th just prior to… -financialjuiceNote
Gold price attracts some buyers in the vicinity of the 100-day Simple Moving Average (SMA) and stages a modest recovery from the $1,937-$1,936 area, or over a two-month low touched the previous day. The XAU/USD climbs back above the $1,950 level during the early European session and for now, seems to have snapped a two-day losing streak.Trade active
Fed feels more comfortable with receding inflationThe Consumer Price Index is edging lower, and it means lower chance of new rate hikes from the Federal Reserve (Fed). Markets like it. There is a compelling case for pausing. Investors already see a growing chance of rate cuts, and that weighs on the Greenback.
Note
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