Markets Analysis

Fundamental Analysis

• The ECB decides on a 0.25% rate hike, raising the policy rate to 4.5%.
• The euro weakens in response, influenced by the perception that interest rates have peaked and a downward revision of growth outlook.
• US economic indicators exceed expectations, increasing hopes for a soft landing.

XAUUSD Technical Analysis

Analyzing the daily chart of gold. While it has been declining along a downward channel, it rebounded at the round number of USD 1900, and volatility has decreased. The 10-day moving average is below the 240-day moving average, indicating the appearance of another death cross.
From a daily perspective, whether gold breaks below USD1895 will be the focus moving forward. US economic indicators have been exceeding market expectations, fueling the appetite for a stronger dollar. Gold might face selling pressure for a while.

Day Trading Strategy (Hourly)

Analyzing the 1-hour chart of gold. While gold has dropped to USD 1900, it has rebounded to USD 1910. A thick cloud from the Ichimoku Kinko Hyo (one-glance equilibrium chart) lies ahead as a resistance, suggesting that breaking above might take time.
Due to the unpredictable nature of the current situation, we might anticipate either a range-bound market or a situation where the price is suppressed by the cloud and starts declining.
As a trading strategy, consider a range-bound market scenario. Consider buying around USD 1900 and selling in the USD 1915 – 1918 range.

Support and Resistance Lines

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

1900 USD – A round number and support line.

Market Sentiment

XAUUSD　Sell: 33% Buy: 67%

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.