Technical Analysis: XAUUSD

XAUUSD reached a record high

On Monday, as the USDX fell and risk aversion climbed, XAUUSD increased by around 3%. It broke above the US$3400 mark to a record high.

The USDX hit a three-year low

On Monday, as remarks made by the US President Trump on the US Fed Governor Powell hit investors’ confidence on American economy, the USDX plunged to the lowest level since March 2022. It ended down 0.88% at 98.36.

Risk aversion climbed

On Monday, the US planned to impose new tariffs on solar imports from Cambodia, Malaysia, Thailand and Vietnam, further raising market aversion. 

Technically speaking, the bullish market trend prevailed

the Chart of the Day

On the chart of the day, XAUUSD continued rising. The bullish market trend prevailed. In terms of technical indicators, MACD went upwards after golden cross occurred, showing that XAUUSD will rise further. Investors should focus on whether XAUUSD will break through the resistance at 3480. It will climb further with potential resistance at 3550 if it breaks above 3480.

4-hour chart

On the 4-hour chart, XAUUSD was prone to fluctuation and climbed. The bullish market trend prevailed. In terms of technical indicators, KDJ went upwards after golden cross occurred, showing that the market trend is bullish. XAUUSD will rise further if it retreats but is stable above 3420.

Key resistance: 3480,3550

Key support: 3420,3380

Generally speaking, the bullish market trend prevailed in the short term. Investors should focus on speeches made by officials at the Fed during the day.