Technical Analysis: XAUUSD

XAUUSD fell to a one-week low

On Tuesday, as the US dollar and the US treasury yield climbed, XAUUSD fell and reached a one-week low.

The Fed officials made hawkish statements

Recent economic data didn’t show the Fed should take immediate actions, and another interest rate hike can’t lead to economic recession, the Fed member Christopher Waller said on the 5^th September.

As economic data is strong, and there is a risk that the inflation will jump, the Fed needs to increase the interest rate, Loretta Mester said.

Goldman Sachs lowered the probability that America will experience economic recession to 15%

Goldman Sachs lowered the probability that America will experience economic recession from 20% to 15%. Although US inflation fell, the labor market still remained resilient.

The bearish market trend prevailed in the short term

the Chart of the Day

On the chart of the day, XAUUSD broke below the insidebar pattern yesterday. The market trend is bearish in the short term. In terms of technical indicators, KDJ went downwards after death cross occurred at a high level, showing XAUUSD will fall further. Investors should focus on whether XAUUSD will break through the resistance at 1934. It will decline further if it rebounds but is capped at 1934.

The 4-hour chart

On the 4-hour chart, XAUUSD was prone to fluctuation and declined. The bearish market trend prevailed. In terms of technical indicators, MACD broke below the zero axis after death cross occurred, showing XAUUSD will fall further. XAUUSD will fall further with potential support at 1903 if it breaks below the support at 1914.

Key resistance: 1934, 1953

Key support: 1914, 1903

Generally speaking, as the Fed officials made hawkish statements, there is a risk that XAUUSD will fall further in the short term. Investors should focus on US ISM Non-Manufacturing PMI (August) and the BOC’s interest rate decision during the day.