Market began to price-in aggressive approach from Fed.
“Greenback gave up as market participants turn away.”
Greenback faces hurdle from the upside as it began to falter during European trading session. Last week, Federal Reserve Chair Jerome Powell signalled for an aggressive approach in monetary policy to curb stubbornly high inflation in the US. While his comment sparked a major appreciation on the greenback, investors began to price-in on that matter. Today, investors will place their attention upon meeting minutes from the European Central Bank to gauge the timeline for monetary policy tightening.
Quick recap on XAUUSD
Gold price halted its descent after tumbling significantly following a close below 200-MA and 1851.36.
XAUUSD Weekly Technical Analysis
Gold price tumbled substantially after closing below 1917.18. Although MACD shows significant bearish momentum, recent price action may suggest otherwise.
XAUUSD Daily Technical Analysis
In daily chart, gold price rebounded near the upward trendline, suggesting bulls may take the lead for the near-term.
ORDER: BUY STOP
STOP LOSS: 1835
Target 1: 1890
Target 2: 1915
ZFX Analyst’s Comment
From our previous report, we suggested the probability of a possible rebound near the upward trendline. For further confirmation, we will require a close above 1851.36 threshold to unleash the next target at 1917.18.
Risk Warning: The above content is for reference only, and does not represent ZFX’s position. ZFX does not assume any form of loss caused by any trading operations carried out in accordance with this article. Please be firm in your thinking and do the corresponding risk control.
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