XAUUSD Bullish Momentum Challenges Resistance Levels
XAUUSD, also known as GOLD or GOLDUSD in forex markets, is among the most traded commodity-based currency pairs. Nicknamed the “safe haven asset,” Gold typically attracts investors during periods of economic uncertainty. Today, the upcoming USD news releases; including Job Cut Announcements, Initial Jobless Claims, Nonfarm Productivity, Unit Labor Costs, Trade Balance, Wholesale Inventories, and Natural Gas Storage; could induce volatility in USD pairs, including XAUUSD. Positive employment data or hawkish comments from FOMC member Patrick Harker might strengthen the USD, potentially putting downward pressure on GOLD. Conversely, weaker-than-expected figures would likely enhance Gold’s appeal, boosting its price upward due to its inverse relationship with USD strength.
Chart Notes:
• Chart time-zone is UTC (+02:00)
• Candles’ time-frame is 4h.
Analyzing the H4 chart for XAUUSD, the price action clearly indicates a fresh bullish momentum, pushing towards previous all-time highs (ATH). The recent ATH has been consistently surpassed, signaling robust bullish sentiment. Currently, the Gold price movements are within expanded Bollinger Bands, illustrating heightened volatility. Price is encountering resistance at the Fibonacci retracement level of 0.786 (around 2927.57). However, given the bullish momentum, GOLDUSD has potential to surpass this level, targeting the 1.0 Fibonacci level (approximately 2953.44), potentially establishing a new ATH. The XAUUSD price resides in the upper half of the Bollinger Bands, with the upper band around 2940 acting as an immediate resistance en route to ATH levels. The RSI at 59.78 indicates bullish strength without being overbought, and Volatility OHLC signals increased trading activity, supporting the bullish scenario.
• DISCLAIMER: Please note that the above analysis is not an investment suggestion by “Capitalcore LLC”. This post has been published only for educational purposes.
