Technical Analysis: XAUUSD

XAUUSD broke the US$2000 mark

On Tuesday, XAUUSD broke US$2000 at one point. It reached US$2007.53, which marked the highest level since 31^st October. It ended up 1.02% at US$1998.31 per ounce.

The Fed meeting minutes didn’t signal the interest rate reduction

On the 21^st November, the Fed announced November monetary policy meeting minutes. Participants agreed to keep the Fed fund interest rate unchanged at 5.25%-5.5% to maximize the employment and keep the inflation rate at 2%. There seems to be a consensus that they will continue evaluate new information and its impacts on monetary policies, and consider additional monetary tightening if necessary.

US existing home sales hit a 13-year low in October

US Existing Home Sales, y/y (October) fell from 395 units to 379 units Vs. 390 units (forecast), according to the data from the National Association of Realtors. This figure marked the lowest level since August 2010.

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

the Chart of the Day

On the chart of the day, XAUUSD increased greatly yesterday. The bullish market trend prevailed in the short term. In terms of technical indicators, KDJ went upwards after golden cross occurred at a low level, showing XAUUSD will rise further. XAUUSD will climb further with potential resistance at 2040 if it breaks above the resistance at 2010.

4-hour chart

On the 4-hour chart, XAUUSD was prone to fluctuation and climbed. The bullish market trend prevailed in the short term. In terms of technical indicators, MACD went upwards after golden cross occurred above the zero axis, showing the market trend is bullish. Investors should focus on whether XAUUSD will break through the support at 1984. It will rise further if it retreats but is stable above 1984.

Key resistance: 2010, 2040

Key support: 1984, 1965

Generally speaking, as the Fed’s meeting minutes had limited influence on XAUUSD, XAUUSD is likely to rise in the short term. Investors should focus on US economic data during the day.