Technical Analysis: XAUUSD

XAUUSD Climbed and then Declined

On Wednesday, boosted by concerns on economic recession, XAUUSD climbed to around the US$2010 mark at one point. However, as the US treasury yield jumped, XAUUSD decreased by around US$30 to US$1983.4 per ounce. It ended down 0.39%.

US Durable Goods Orders was Strong

According to the data provided by the US Department of Labor, US Durable Goods Orders, m/m (March) increased from -1.2% to 3.2%, the highest since December 2022. It was much higher than the forecast of 0.70%.

The Expectation that the ECB will Raise the Interest Rate Rose

The ECB will hold a monetary policy meeting on May 4. As the Eurozone inflation is much higher than the goal set by the ECB, the officials at the ECB were diverged on whether the interest rate will be raised. However, the ECB is expected to continue to increase the interest rate at the May 4 meeting.

Technically speaking, XAUUSD is likely to retreat in the short term

the chart of the day

On the chart of the day, XAUUSD tested the supply area and then fell yesterday. It is likely to retreat in the short term. In terms of technical indicators, XAUUSD was between the middle rail of the Bollinger Band and the bottom rail of the Bollinger Band, demonstrating that the market trend is bearish in the short term. XAUUSD will start declining if it breaks below the support at 1970.

4-hour chart

On the 4-hour chart, triangle collating occurred. Investors should focus on whether XAUUSD will break through the triangle collating. In terms of technical indicators, KDJ went downwards after death cross occurred, demonstrating that XAUUSD will fall further. XAUUSD will dip further if it rebounds but is capped at the resistance at 2000.

Key resistance: 2000, 2015

Key support: 1970, 1950

Generally speaking, as the US treasury yield climbed, XAUUSD broke below the US$2000 mark. Investors should focus on US GDP, y/y (Quarter 1) and US Core PCE Price Index, y/y (Quarter 1) during the day.