Technical Analysis: XAUUSD

XAUUSD plunged by more than 1%

On Tuesday, XAUUSD decreased by more than 1%. It broke below the US$3290 mark to the lowest level since 30^th June for some time.  OOptimism over trade climbed

The negotiation between the US and its main trade partners released optimistic signals recently, cutting the demand for safe-haven assets.

Gold ETF holdings declined

As of the 8^th July, gold ETF holdings decreased by 1.15 tons to 946.51 tons, according to the data from the world’s largest gold ETF--SPDR Gold Trust.

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

the Chart of the Day

On the chart of the day, XAUUSD closed in negative territory yesterday. The bearish market trend prevailed in the short term. In terms of technical indicators, MACD went downwards after death cross occurred, showing that XAUUSD will fall further. Investors should focus on whether XAUUSD will break through the support at 3250. It will decline further with potential support at 3200 if it breaks below 3250.

4-hour chart

On the 4-hour chart, XAUUSD was prone to fluctuation and declined in the short term. The bearish market trend prevailed. In terms of technical indicators, KDJ went downwards after death cross occurred, showing that the bearish market trend prevailed. Investors should focus on whether XAUUSD will break through the resistance at 3330. It will dip if it rebounds but is capped at 3330.

Key resistance: 3330,3365

Key support: 3250,3200

Generally speaking, the bearish market trend prevailed in the short term. Investors should focus on the Fed’s monetary policy meeting minutes during the day.