Markets Analysis

Fundamental Analysis

• Major U.S. Stock Indexes Slightly Higher, Trading Volume Down Ahead of Important Events
• FOMC draws market attention; volatility could increase depending on outcome
• FOMC meeting has a 70% chance of halting rate hikes; Chairman Powell expected to review the effects of the rate hikes
• Gold is range-bound, with strong selling pressure above USD 1970

Gold Technical Analysis

Gold is range-bound, with a resistance zone at USD 1970 preventing any upside and approaching the hourly 240 moving average; if the FOMC decides to halt rate hikes, we can expect some upside for Gold.

At this FOMC meeting, all eyes will be on Fed Chair Jerome Powell’s comments at his press conference. A hawkish stance to resume rate hikes would put downward pressure on Gold again and could bring it closer to the USD 1935 support line. If he comments that the suspension of interest rate hikes will continue into July, it will be an upside for Gold and the USD 2,000 level will be in sight again.

Day Trade Strategy (Hourly)

Our day trade policy is range trading; we believe we can look for selling opportunities utilizing technical indicators once we reach the USD 1980 level, as the market is likely to rise before the FOMC meeting but then fall quickly. We would like to attract and sell.

We are aware of the 23.6% Fibonacci retracement and there is a large resistance zone at USD 1969. Also, when drawing the Fibonacci Expansion, USD 1987 corresponds to 100%. If the dollar’s depreciation is stronger than expected, we expect the price to rise toward USD 1987.

Support and Resistance Lines

The resistance line to be considered in the future is as follows

USD 1,987 – Target price for uptrend
USD 1,969 – Major resistance zone
USD 1,948 – Major support zone

Market Sentiment

XAUUSD　Sell: 55% Buy: 45%

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.