Chart Overview
The provided XAUUSD weekly chart shows a strong upward trend within a well-defined ascending channel. Key elements on the chart include:
1. Upward Channel: The price is oscillating within an upward channel, indicating a bullish trend.
2. Fair Value Gaps (FVG): Several FVGs are marked, indicating potential areas of support and resistance.
3. Break of Structure (BOS): A BOS is noted, suggesting a continuation of the bullish trend.
Recent Price Action
- Gapping Higher: Gold gapped higher on the open following the announcement that US President Joe Biden dropped out of the upcoming presidential elections. This gap reflects market reactions to significant political news, increasing uncertainty, and demand for safe-haven assets like gold.
- Current Price: As of the chart, XAUUSD is trading around $2,401.890, showing a slight decline from the recent high but still within the upper range of the channel.
- Bearish Pin Bar: Last week’s candle closed as a bearish pin bar, indicating potential reversal or consolidation despite the overall bullish trend. This suggests selling pressure at higher levels.
Technical Indicators
- Support Levels: Around $2,320 and $2,280, marked by FVGs, indicating strong support zones.
- Resistance Levels: Near $2,480, which is the upper boundary of the channel, acting as a resistance level.
- Bearish Pin Bar: The presence of the bearish pin bar at the top of the trend channel suggests a potential pullback or correction. This could lead to a retest of the lower channel boundary or the FVG support zones.
Key Factors to Watch
1. Political Uncertainty: The announcement of Biden's exit from the presidential race could lead to increased volatility and continued support for gold as a safe-haven asset.
2. Economic Indicators: Upcoming US economic data, including inflation rates and employment figures, will impact the USD and, consequently, gold prices.
3. Global Economic Conditions: Ongoing geopolitical tensions and economic uncertainties will also influence gold prices.
Conclusion
The weekly chart of XAUUSD indicates a strong bullish trend within an ascending channel, with recent political news causing a gap higher in the price. However, the formation of a bearish pin bar last week suggests caution, as it indicates potential selling pressure and the possibility of a short-term pullback. Key support levels are noted around $2,320 and $2,280, with resistance near $2,480. Traders should monitor political developments, economic indicators, and price action in the coming weeks to confirm if the bullish trend will continue or if a deeper correction is likely.
Disclaimer
The analysis provided above is for informational purposes only and should not be construed as financial or investment advice.
