XAU/USD: Bearish Trend Meets Strong USD
Updated
the 
XAUUSD pair has shown significant bearish momentum, particularly with no notable retracements. This technical outlook is further substantiated by key economic indicators for 2023 that suggest a strong U.S. Dollar. With a GDP growth rate of 2.2%, a low unemployment rate of 3.5%, and a high interest rate of 5.5%, the U.S. Dollar Index (DXY) appears to be in a bullish position. These factors could potentially attract foreign capital inflows, adding further downward pressure on the gold prices denominated in U.S. dollars. However, traders should also consider the negative balance of trade and current account deficits, which could introduce some volatility and exert downward pressure on the U.S. Dollar, thereby affecting the XAU/USD pair. The inflation rate, currently at 3.2%, could also play a role depending on the Federal Reserve's policy response. Given these fundamentals, if the XAU/USD pair retraces to the 1833 to 1880 range and shows signs of reversal, it could offer an optimal entry point for short positions, targeting the strong support level around 1800.
Targets: 1874, 1880, 1885
Overall View:
https://www.tradingview.com/x/7OEaB4Eu/
DXY
https://www.tradingview.com/x/fJq4bgEM/
"Stay disciplined and patient"
"Keep analysis simple and concise"
"Have a risk management strategy"
"Trade with a clear mind"
XAUUSD pair has shown significant bearish momentum, particularly with no notable retracements. This technical outlook is further substantiated by key economic indicators for 2023 that suggest a strong U.S. Dollar. With a GDP growth rate of 2.2%, a low unemployment rate of 3.5%, and a high interest rate of 5.5%, the U.S. Dollar Index (DXY) appears to be in a bullish position. These factors could potentially attract foreign capital inflows, adding further downward pressure on the gold prices denominated in U.S. dollars. However, traders should also consider the negative balance of trade and current account deficits, which could introduce some volatility and exert downward pressure on the U.S. Dollar, thereby affecting the XAU/USD pair. The inflation rate, currently at 3.2%, could also play a role depending on the Federal Reserve's policy response. Given these fundamentals, if the XAU/USD pair retraces to the 1833 to 1880 range and shows signs of reversal, it could offer an optimal entry point for short positions, targeting the strong support level around 1800.Targets: 1874, 1880, 1885
Overall View:
https://www.tradingview.com/x/7OEaB4Eu/
DXY
https://www.tradingview.com/x/fJq4bgEM/
"Stay disciplined and patient"
"Keep analysis simple and concise"
"Have a risk management strategy"
"Trade with a clear mind"
Note
Possible Bullish Scenario Trade active
Note
one of the TP reachedNote
All TPs have been reached
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