The recent release of CPI data had a significant impact on the price of Gold, causing it to drop from its recent peak of $2,000 to around the $1980 mark. As we await the release of Retail sales data from the US, it is crucial to carefully analyze the current state of the XAUUSD market and make projections for its future movements.
Previously, I had shared an analysis on XAUUSD in January, where I accurately predicted the bearish movement that has unfolded since then. Now, the market has reached the target demand zone that I had indicated. Looking ahead, it is essential to note that the confluence of the 100-day moving average, the 76% Fibonacci retracement level, and the bullish array of the moving averages are expected to infuse renewed bullish vigor into the market.
Upon observing the 4-hour timeframe of XAUUSD, we can see that the price is currently trading within the demand zone at the 76% Fibonacci retracement level. Remarkably, this demand zone aligns perfectly with the one identified on the daily timeframe. This alignment serves as a strong confirmation of the anticipated incoming bullish pressure in the market.
Based on the analysis conducted and the prevailing market conditions, analysts expect a bullish trend for XAUUSD. The projected target for the price of Gold is set at $2020.95, with the invalidation point being $1972.22. These expectations are driven by the confluence of technical indicators and the overall sentiment surrounding the market.
It is important to recognize that trading in CFDs carries inherent risks. To navigate these opportunities successfully, it is crucial to manage risks effectively. Conducting thorough due diligence and implementing appropriate risk management strategies are essential steps to avoid costly mistakes in your trading endeavors.
While the recent volatility in the XAUUSD market has caused a temporary dip in the price of Gold, the overall outlook remains bullish. The confluence of technical indicators and the confirmation of multiple timeframes support this projection. However, it is crucial to remain vigilant, adapt to changing market conditions, and manage risks carefully in order to navigate this uncertain landscape effectively.
Leave a Reply