Gold looks set to extend a weeks-long uptrend despite cooling global trade tensions.
We’re checking out XAU/USD’s 4-hour time frame for potential areas of interest!
XAU/USD 4-hour Chart by TradingView
U.S.-China trade talks might be making progress, but gold ain’t flinching. XAU/USD is still catching bids as safe haven peeps stay strapped in, thanks to falling U.S. yields and some nerves ahead of this week’s CPI and next week’s FOMC.
With the dollar losing steam, gold’s got room to flex.
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your homework on gold and the U.S. dollar, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
XAU/USD has been making higher highs and higher lows since mid-May and recently found support around the $3,300 area, which is near both the 100 and 200 SMAs. This level also lines up with the ascending channel support on the 4-hour time frame.
A few more bullish candlesticks could support upward momentum and take gold back to the $3,400 previous highs, or even the $3,425 level near the top of the channel and the R2 Pivot Point at $3,441.
However, if XAU/USD comes under renewed selling pressure in the next few sessions, watch for red candlesticks and a clear break below channel support. That scenario could bring the $3,250 previous lows back into play.
Whichever bias you end up trading, don’t forget to practice proper risk management and stay aware of top-tier catalysts that could influence overall market sentiment!
Disclaimer:
Please be aware that the technical analysis content provided herein is for informational and educational purposes only. It should not be construed as trading advice or a suggestion of any specific directional bias. Technical analysis is just one aspect of a comprehensive trading strategy. The technical setups discussed are intended to highlight potential areas of interest that other traders may be observing. Ultimately, all trading decisions, risk management strategies, and their resulting outcomes are the sole responsibility of each individual trader. Please trade responsibly.
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