Technical Analysis: XAUUSD

XAUUSD surged by about 3%

On Monday, as the USDX fell and geopolitical tension escalated, XAUUSD surged by about 3% and broke above US$3380 to a 3-week high.

The USDX hit a 6-week low

On Monday, as US manufacturing data was weak, the USDX was was capped and hit a 6-week low. It ended down 0.76% at 98.69.

Geopolitical risks increased

On Monday, as the negotiation between Russia and Ukraine failed, geopolitical tension escalated again, boosting XAUUSD.

Technically speaking, the bullish market trend prevailed in the short term

the Chart of the Day

On the chart of the day, XAUUSD broke above the insidebar pattern yesterday. The bullish market trend prevailed in the short term. In terms of technical indicators, KDJ went upwards after golden cross occurred, showing that XAUUSD will rise further. On the other hand, it will continue jumping with potential resistance at 3500 if it it breaks above the resistance at 3430.

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, MACD went upwards after golden cross occurred, showing that the market trend is bullish. Investors should focus on whether XAUUSD will break through the support at 3331. It will rise further if it retreats but is stable above 3331.

Key resistance: 3430,3500

Key support: 3331, 3290

Generally speaking, the bullish market trend prevailed in the short term. Investors should focus on US economic data during the day.