Technical Analysis: XAUUSD

XAUUSD broke below the 1830 mark

On Wednesday, as the US dollar index increased, XAUUSD fell and broke below the 1830 mark. It finally decreased by 0.53% and closed to US$1825.23 per ounce.

The Fed announced hawkish meeting minutes

On Wednesday, the Fed announced February monetary policy meeting minutes, showing conferees will support the Fed continue raising the interest rate before the inflation is curbed. Almost every conferee agreed to raise the Fed fund interest rate to 25 basis points, while some conferees agreed with a 50-bais-point fund rate.

Bullard said the terminal rate should be more than 5%

On 22^nd February, local time, the St. Louis Fed Governor James Bullard said the US economy was more resilient than expected, thus the Fed should continue raising the interest rate this year. He was confident in the Fed’s ability to curb the inflation, adding that the interest rate will not cause the economic recession. He reiterated that the terminal interest rate should be more than 5%.

Technically speaking, the market trend is bearish

the chart of the day

On the chart of the day, XAUUSD continued falling. The market trend is bearish in the short term. In terms of technical indicators, MACD broke below the zero axis after death cross occurred, demonstrating that XAUUSD will fall further. Investors should focus on whether XAUUSD will break through the resistance at 1833. It will decline further if it is capped at 1833.

4-hour chart

On the 4-hour chart, XAUUSD was prone to fluctuation and decreased. The market trend is bearish in the short term. In terms of technical indicators, KDJ went downwards after death cross occurred, demonstrating that the market trend is bearish. XAUUSD will fall further with potential support at 1800 if it breaks below 1819.

Key resistance: 1833,1847

Key support: 1819,1800

Generally speaking, as the Fed announced hawkish meeting minutes, XAUUSD may fall further. Investors should focus on US Initial Jobless Claims (during the week ending on 18^th February) during the day.