XAUUSD, H4
Gold held on to the bulk of post-FOMC gains, currently trading at $1,331.00, after topping at $1,336.90 yesterday afternoon. The USDIndex touched better than 2-week lows, providing support, while general risk-off market conditions have seen safe-haven flow into gold. The 50-day moving average at $1,332.36 remains the immediate resistance level, while the 50.0% Fibonacci retracement since January’s decline, is the next resistance level, at $1,336.00. A break above this level opens the way to $1,341.00 and $1,3145.00 area. Oppositely, a break under the 38.2% Fibonacci level at $1,326.60 brings the sub $1,317.00 level into view, which is the confluence of 20 and 50 period SMA in the 4-hour chart.
Therefore today’s closing price is significant for its future direction, since it has been in a consolidation mode so far today, within 38.2 and 50.0 Fibonacci levels.
Hence with the data out of the way, the focus turns into US politics. The US House has just cleared a path for the $1.3 tln spending bill though September for a vote and to avert a shutdown later this week. If cleared for take-off in the Senate, it will then have to be approved there and sent to the President as well. Meanwhile, its just one brick in the wall of worry today, including the tech slide and tariff announcement. Hence focus for the rest of the day, turns to the “presidential memorandum” on China trade at 12:30 ET, as the next step towards tariffs.
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Andria Pichidi
Market Analyst
HotForex
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