Stock Indices Rebound Strongly as US Rate Cut Expectations Rise, Gold Declines【August 7, 2024】

Fundamental Analysis

• Stock indices rebounded significantly, with the Nikkei 225 seeing its largest increase ever.
• The stock market continues to fluctuate, with few notable economic indicators this week.
• Gold has not risen as rate cut expectations are gradually being priced in.

XAUUSD technical analysis

Analyzing the daily chart of gold, we see that it has fallen below the middle line of the Bollinger Bands. The target is the upper limit of the Ichimoku Cloud. There is also strong support at 2358USD, making the range from 2358USD to 2368USD appear relatively firm.

Gold is currently distanced from the 10-day moving average, with the lagging span about to fall below the candlesticks. Downward pressure is likely to continue.

Day trading strategy (1 hour)

On the 1-hour chart for gold, the 90-period moving average is showing a gradual downward trend, as is the 10-period moving average. Additionally, the conversion line is also declining, suggesting a possible drop to around 2364USD.

For day trading, I would consider picking up any dips. Although it’s a bit deep, I would buy at 2358USD, set a stop at 2350USD, and aim for a take profit at 2375USD.

Support/Resistance lines

The support and resistance levels to consider moving forward are as follows:

• 2364USD: Recent low

Market Sentiment

XAUUSD: Sell: 57%, Buy: 43%

Featured Currency Pair of the Week (AUDNZD)

The AUDNZD pair has formed a long upper shadow and declined, exhibiting a typical “three black crows” pattern. Currently, the daily chart is moving within the cloud, and it may become somewhat unstable until it breaks out of the cloud. If it falls below 1.09USD, it may aim for around 1.085USD. As the Bollinger Bands are moving near the -2σ line, caution is needed for any correction movements.

Today’s important economic indicators

*Trading advice in this article is not provided by Milton Markets, but by Shu Fujiyasu Jr., a certified technical analyst.