During the Asian session on Wednesday, the USD/CAD pair rebounded after two days of losses, reaching around 1.3590. This uptick is fueled by a stronger US dollar and lower crude oil prices, which put pressure on the Canadian dollar. The decline in Western Texas Intermediate (WTI) oil prices to approximately $80.70 is attributed to...
XAUUSD: Will Prices Soar Higher?
2024-03-14 • Updated
Gold prices bounced back on Wednesday, reaching $2,173.60 after briefly dipping to $2,150.00. Traders speculate that the US Federal Reserve (Fed) might reduce borrowing costs, but a recent report showing higher-than-expected inflation in the US could delay such actions. Despite signs of a cooling labor market, the US economy remains robust, with inflation staying above 3.2% in the twelve months to February. Fed Chair Jerome Powell stated last week that policy easing is possible if conditions allow, but the Fed remains data-dependent and cautious about starting a trimming cycle. Meanwhile, the XAU/USD remains in positive territory, despite a slight increase in the US 10-year Treasury bond yield to 4.19%.
XAUUSD - D1 Timeframe
On the daily timeframe of XAUUSD, we can clearly see that the structure has been broken, with price shooting clear of the previous high. In line with this, we also see that the moving average array on the daily timeframe remains clearly bullish.
XAUUSD - H1 Timeframe
On the 1-hour timeframe, we see price gliding towards the trendline support, as well as the 200-period moving average. There is also a notable demand zone just below the trendline support. Comparing the price action on the 1-hour timeframe with that of the daily timeframe, I believe it’s quite clear that the sentiment is bullish - and the reason(s) why. Do note, that a break below the trendline and the demand zone could indicate the onset of renewed bearish vigour.
Analyst’s Expectations:
Direction: Bullish
Target: $2,181.88
Invalidation: $2,149.59
CONCLUSION
The trading of CFDs comes at a risk. Thus, to succeed, you have to manage risks properly. To avoid costly mistakes while you look to trade these opportunities, be sure to do your due diligence and manage your risk appropriately.
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Hello again my friends, it’s time for another episode of “What to Trade,” this time, for the month of April. As usual, I present to you some of my most anticipated trade ideas for the month of April, according to my technical analysis style. I therefore encourage you to do your due diligence, as always, and manage your risks appropriately.
Bearish scenario: Sell below 1.0820 / 1.0841... Bullish scenario: Buy above 1.0827...