Gold Spot / U.S. DollarUpdated My Analysis of XAU/USD: Upcoming Economic Data and Trading ideas
As gold (XAU/USD) hovers near the psychological level of $2,700.4, with a recent low at $2,698.4, market sentiment is critical. Recent price action shows signs of fading momentum, with buyers stepping in to stabilize prices around $2,700-03 at the end of the week.
Supply and Demand Analysis
Using a supply and demand approach, the following zones are significant:
Demand Zone (PWH):
Range: $2,694.87 to $2,700.4
Opportunity: A bounce from this zone could present a buying opportunity, as recent action suggests increased buying interest.
Recent Low:
Level: $2,698.4
Analysis: A break below this level may indicate increasing selling pressure; however, a reversal could reaffirm support.
Supply Zone (EQH):
Level: $2,714.365
Opportunity: If prices rally here, it may create a chance to short, especially if rejection signals appear.
Trading Scenarios:
Long Position:
Entry: Around $2,700.4
Stop Loss: Below $2,694.87
Target: Near $2,714.365 or higher if bullish momentum continues.
Short Position:
Entry: Near $2,714.365 upon signs of rejection.
Stop Loss: Above the supply zone.
Target: Towards $2,700 or lower.
Upcoming Economic Releases
Several key economic indicators are scheduled for next week that could significantly impact the USD and, consequently, gold prices:
Conclusion
Monitoring these economic indicators is essential for navigating potential price movements in XAU/USD. Align your trading strategy with the outcomes of these indicators to enhance decision-making. With the current market dynamics, traders should remain vigilant and adaptable to changing conditions, capitalizing on opportunities based on the evolving economic landscape.
Supply and Demand Analysis
Using a supply and demand approach, the following zones are significant:
Demand Zone (PWH):
Range: $2,694.87 to $2,700.4
Opportunity: A bounce from this zone could present a buying opportunity, as recent action suggests increased buying interest.
Recent Low:
Level: $2,698.4
Analysis: A break below this level may indicate increasing selling pressure; however, a reversal could reaffirm support.
Supply Zone (EQH):
Level: $2,714.365
Opportunity: If prices rally here, it may create a chance to short, especially if rejection signals appear.
Trading Scenarios:
Long Position:
Entry: Around $2,700.4
Stop Loss: Below $2,694.87
Target: Near $2,714.365 or higher if bullish momentum continues.
Short Position:
Entry: Near $2,714.365 upon signs of rejection.
Stop Loss: Above the supply zone.
Target: Towards $2,700 or lower.
Upcoming Economic Releases
Several key economic indicators are scheduled for next week that could significantly impact the USD and, consequently, gold prices:
- Consumer Price Index (CPI): January 23
- Higher inflation may bolster gold demand.
- FOMC Minutes: January 24
- Insights on future interest rate policy could influence market sentiment toward the USD.
- Initial Jobless Claims: January 25
- An increase could weaken the USD, potentially supporting gold prices.
- Manufacturing and Services PMI: January 26
- Strong data may strengthen the USD, thereby exerting pressure on gold.
Conclusion
Monitoring these economic indicators is essential for navigating potential price movements in XAU/USD. Align your trading strategy with the outcomes of these indicators to enhance decision-making. With the current market dynamics, traders should remain vigilant and adaptable to changing conditions, capitalizing on opportunities based on the evolving economic landscape.
Trade active
market opened with a clear sell to buy move ltf denying us entry confirmation to the propose trading plan.as that was happening we initiated our buy setup at the strong pdl demand zone for a strong push to the upside..with always following a confirmation based analysis we executed our buy side setup at strong demand area 2694-2689 target 1.3 rr at 2714Trade closed: target reached
we attained our target now lets see if bears will hold at that supply..
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