Pre-PMI Data Release:
Last Friday, ahead of the Flash Manufacturing PMI and Flash Services PMI data releases, the yellow metal (XAUUSD) showed a buyers’ retreat signal on the 4-hour timeframe. The price dropped following the PMI data release but found support, bouncing off the hourly and 4-hour support zones. The downtrend halted above 2316.44, which aligns with the 50% retracement level of the May 18, 2024, 13:00 candle pattern.
Current Outlook:
Today, XAUUSD opens with potential for bullish movement, aiming to push the price back to significant resistance at R1 2330. If the price surpasses 2330, it could test the R2 zone between 2345 and 2450. However, traders should be cautious as sellers might aggressively defend the R2 zone, potentially driving the price down to complete and break the head and shoulders pattern structure, continuing the decline towards the 2200/2150 demand zone.
Upcoming Economic Events:
This week, traders should brace for increased market volatility with several high-impact economic events on the calendar:
- CB Consumer Confidence
- Final GDP
- Unemployment Claims
- Pending Home Sales
- Core PCE Index m/m
- Revised UoM Consumer Sentiment
Particularly, the market is expected to be highly volatile on Friday with the Core PCE Index m/m release.
Key Levels to Watch:
- Support: 2316.44 (recent low), 2200/2150 (demand zone)
- Resistance: R1 2330, R2 2345/2450
Stay updated and manage your trades carefully as these events unfold. For more detailed analysis and real-time updates, join our Telegram Community.
XAUUSD Daily Timeframe Analysis Conclusion:
This week’s analysis of XAUUSD suggests a cautious approach as the market reacts to economic data. Keep an eye on key support and resistance levels and be prepared for potential volatility.
Join our Live Trading Sessions:
Don’t miss out on our upcoming live trading sessions where we provide real-time market analysis, trading signals, and strategies to help you navigate the market with confidence. Register Here
Follow Us:
Stay connected and follow us on YouTube for more trading insights and updates.