Gold's Strong Recovery: Key Levels to Watch in XAU/USD

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XAU/USD Technical Analysis: Gold Shows Strong Recovery Amid Global Economic Optimism 💰📊
Introduction: Gold (XAU/USD) is currently experiencing a strong recovery, supported by several key factors in the global economic landscape. One notable factor is the 90-day tariff suspension for major countries worldwide, which has created a more positive sentiment among investors. Additionally, U.S. stock markets saw a strong boost as this news was announced. The recent FOMC meeting also highlighted the potential for interest rate cuts later this year, further boosting optimism across financial markets. 📈

Technical Analysis: On the XAU/USD chart, gold is showing a solid recovery from recent lows. The price has broken through key resistance levels and is now approaching new highs. Here are the important resistance and support levels that traders should keep an eye on:

Key Resistance Levels:

3146

3162

3168

Key Support Levels:

3096

3078

3066

3052

Moving Averages (MA):

MA 13 (Orange Line): This short-term moving average is supporting the upward trend and providing BUY entry signals when the price is above MA 13.

MA 34 (Yellow Line): The medium-term MA is positioned above the price, further supporting the bullish trend.

MA 200 (Red Line): The long-term MA is confirming a strong uptrend as the price remains above MA 200, reinforcing the positive outlook for gold.

Trading Plan:

BUY ZONE 📈:

Buy Zone: 3096 - 3094

SL (Stop Loss): 3090

TP (Take Profit): 3100 - 3104 - 3108 - 3112 - 3116 - 3120

SELL ZONE 🔽:

Sell Zone: 3164 - 3166

SL (Stop Loss): 3170

TP (Take Profit): 3160 - 3156 - 3152 - 3148 - 3144 - 3140

Fundamental Analysis: Yesterday was a positive day for gold, with various fundamental factors supporting the short-term and medium-term bullish outlook. The suspension of tariffs for 90 days among major countries has created a positive sentiment, and the possibility of interest rate cuts from the FOMC has strengthened the expectation of gold's recovery. 📈💡

Risk Management Advice: Given the current market momentum, the strategy is to focus on BUY entries near key support levels. However, traders should be cautious when selling, as the bullish trend may continue strongly if the price breaks through key resistance levels. Always apply proper risk management by using stop loss and only trade with capital you can afford to lose.

Conclusion: Gold is currently in a strong recovery cycle, with both fundamental and technical factors supporting the uptrend. Traders should watch for key support and resistance levels to implement their trading strategies effectively. Be prepared for BUY opportunities near support zones and watch the resistance levels for potential sell signals as the market moves forward. 📊📉

What are your thoughts on Gold's movement? Share your analysis and trade ideas in the comments below! 💬👇

Disclaimer

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