XAUUSD approaches a correction below 2200
RalphBenjamin greets everyone , let's update and discuss today's trading strategy!
In general, XAUUSD has been experiencing minimal volatility, primarily moving within a range of about 100 pips. It is currently trading at $2178 after reaching a peak of $2184, marking a 0.19% decrease for the day. Opportunities to sell gold have been consistently appearing since it reached its high at $2195, and it has been unable to hold on to its position above $2200. Should we expect further declines?
Considering the factors mentioned above, the relatively stable foundation of XAUUSD is advantageous for bearish sentiment in the near future.
In terms of influencing factors, the modest appreciation of the US Dollar (USD) is expected to weaken the price of gold, although there is speculation that the Fed will start cutting interest rates in June and the decline in US Treasury yields may provide some support. Additionally, political tensions and expectations of a potential global economic slowdown by 2024 could limit the downside of this safe haven metal. Therefore, it would be wise to wait for a strong selling wave before confirming that XAU/USD has reached its peak and preparing for deeper losses.
Regarding the new prospects for XAUUSD: From the 1-hour chart, it is currently receiving immediate support at 2175 USD. Surpassing this level will open up significant downside potential for this precious metal. I anticipate a correction, as the support liquidity zones have been completely broken after a strong test of 2200 USD.
In general, XAUUSD has been experiencing minimal volatility, primarily moving within a range of about 100 pips. It is currently trading at $2178 after reaching a peak of $2184, marking a 0.19% decrease for the day. Opportunities to sell gold have been consistently appearing since it reached its high at $2195, and it has been unable to hold on to its position above $2200. Should we expect further declines?
Considering the factors mentioned above, the relatively stable foundation of XAUUSD is advantageous for bearish sentiment in the near future.
In terms of influencing factors, the modest appreciation of the US Dollar (USD) is expected to weaken the price of gold, although there is speculation that the Fed will start cutting interest rates in June and the decline in US Treasury yields may provide some support. Additionally, political tensions and expectations of a potential global economic slowdown by 2024 could limit the downside of this safe haven metal. Therefore, it would be wise to wait for a strong selling wave before confirming that XAU/USD has reached its peak and preparing for deeper losses.
Regarding the new prospects for XAUUSD: From the 1-hour chart, it is currently receiving immediate support at 2175 USD. Surpassing this level will open up significant downside potential for this precious metal. I anticipate a correction, as the support liquidity zones have been completely broken after a strong test of 2200 USD.
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Comment:
Gold prices fell, the breakout was as I predicted although there was no strong correction to 2200 USD. Good luck with the translation transaction first
