Fundamental Analysis

• Gold is showing signs of renewed strength after breaking through a key upward trendline. Attention today will turn to the U.S. ADP Employment Report, with 3,465USD acting as a major resistance level. The lower end remains firm, supported by the Ichimoku Cloud and the 52-day moving average.
• A Fibonacci Expansion shows that the 61.8% level aligns near 3,465USD – a previous high from early April. A poor ADP reading could boost gold prices, potentially opening the path to the 100% level at 3,645USD over the mid-to-long term. NY trading hours will be crucial.

XAUUSD Technical Analysis

The daily chart indicates bullish momentum returning after the price broke above the trendline. With the Ichimoku Cloud and 52-day MA providing strong support, the market looks well-positioned for upward movement.

Day Trading Strategy (1-Hour Chart)

On the 1-hour chart, gold approached the 3,400USD level but faced resistance and pulled back. It’s currently moving within the Ichimoku Cloud. While it briefly bounced at the 52-hour MA, momentum didn’t hold, and prices are retreating again.If the price breaks below the 52-hour MA, further downside may follow. A potential buy-on-dip scenario could emerge near the lower edge of the cloud around 3,330USD. However, caution is advised due to today’s ADP report—no pending orders are recommended.

Support and Resistance Levels

Support and resistance levels to watch going forward:

• 3,465 USD – Recent daily high (resistance)
  
• 3,400 USD – Psychological round number

Market Sentiment

XAUUSD

• 50% short / 50% long

Today’s Key Economic Events

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