Technical Analysis: XAUUSD

XAUUSD broke the 1950 mark

On Wednesday, boosted by the Fed’s dovish signals, XAUUSD surged and broke above the 1950 mark. It finally increased by 1.14%.

The Fed released dovish statements

On Wednesday, the Fed increased the interest rate by 25 basis points, and raised the federal fund rate target to 4.50%-4.75%, meeting expectations. The Fed has slowed down the interest rate hike for the second straight time. The Fed reduced the interest rate hike to 25 basis points for the first time since March 2022. The Fed Governor Powell said in a press conference that the Fed was discussing suspending the interest rate hike after raising the interest rate for two times.

US ISM Manufacturing PMI has fallen for the 5^th straight month

US ISM Manufacturing PMI (January) fell to 47.4, the lowest since May 2020, as factory orders and factory production declined further. ISM manufacturing report shows that the demand is weak in many industries, which is a signal that economic growth slows down in the United States.

Technically speaking, the market trend is bullish

the chart of the day

On the chart of the day, XAUUSD continued rising. The market trend is bullish in the short term. In terms of technical indicators, KDJ went upwards after golden cross occurred at high levels, demonstrating that XAUUSD will rise further in the short term. If XAUUSD continues rising, investors should focus on whether it will break through the resistance at 1980.

4-hour chart

On the 4-hour chart, XAUUSD fluctuated and increased. The market trend is bullish. In terms of technical indicators, MACD went upwards after golden cross occurred, demonstrating that XAUUSD will rise further. XAUUSD will climb further if it is steady above the support at 1933.

Key resistance: 1980, 1998

Key support: 1933, 1920

XAUUSD will rise further in the short term as the Fed releases dovish signals and the economic growth slows down. Investors should focus on the BOE interest rate decision and the ECB interest rate decision during the day.