Fundamental Analysis

• The U.S. economy recorded negative growth for the first time in three years, dealing a blow to the Trump administration.
• The second round of U.S.-Japan trade negotiations is underway, and the USD Index is declining.

XAUUSD Technical Analysis

Analyzing the daily chart of gold. Gold has pulled back for three consecutive days, breaking below the lower end of its range. The market is closely watching the Fibonacci levels, with potential downside extending to the 100% level near 3200USD.

Since gold has fallen below the midline of the Bollinger Bands, a deeper correction is also possible. For now, attention should be paid to whether the 100% Fibonacci level holds.

Expectations for a rate cut are increasing, and the U.S. has also entered negative growth for the first time in two years. While we await this week’s U.S. employment data, a pause in the correction could trigger another upward trend.

Day trading strategy (1 hour)

Analyzing the 1-hour chart of gold. The price has broken below the 3250USD support level and has also breached the +2σ line of the Bollinger Bands, indicating a strengthening downward trend. Caution is advised for a possible band walk. A drop toward 3200USD is expected.

If gold approaches 3200USD, consider a dip-buying strategy. Set the stop loss at 3190USD and take profit near 3250USD.

Support/Resistance lines

Key support and resistance lines to consider:

• 3200USD – Fibonacci Level

Market Sentiment

XAUUSD: Sell: 52% / Buy: 48%

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.