After the Fed’s Rate Cut: Gold’s Price Action and What’s NextYesterday was another wildly volatile day for OANDA:XAUUSD , with prices dropping approximately 600 pips following the Fed's rate cut.
After breaking below the 2645-2650 confluence support on Tuesday, the market entered a day of consolidation with a tight trading range.
However, the calm didn’t last long...
Yesterday's sharp decline took prices below the 2610-2615 technical support zone and even breached the critical 2600 level.
Overnight, Gold rebounded back above 2600, but in my opinion, this recovery is likely a normal retracement and does not signal a bottom for the yellow metal.
For bears, the sell zone begins at 2620 and extends slightly past 2630, accounting for the heightened volatility. This area presents an opportunity to look for short entries. The initial target for this move would be yesterday's low, but I wouldn’t be surprised to see Gold drop further toward the 2525 key support level in the near future.
As long as prices remain below the 2650-2660 resistance range, the outlook for XauUsd stays firmly bearish .
Xauusdforecast
Gold forms a secondary high and will fall sharply againHello everyone. Today we can see that the 4-hour chart seems to need to form a triple top resistance at the secondary high point.
It can be found that the current trend of the 4-hour chart is very similar to the previous one. Both are after a long period of consolidation and then fall sharply again
Therefore, if the current trend of gold replicates the previous market after touching the resistance area, then you must be careful of a sharp drop in CPI
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Don't trade XAU/USD in the middleGold is currently in a phase where it’s too early to establish an uptrend channel, but the conditions are ripening for a retest of its previous all-time high in the $2,793 area. What’s crucial at this stage is the formation of a rounded bullish pattern, which could set the stage for further upward momentum.
Short-Term Movement: Retest and Cooling Down
Retest of $2,793:
A rally to retest the $2,793 level appears likely, as gold capitalizes on recent bullish momentum.
Cooling Phase:
After rejecting the all-time high, gold could cool down, first retreating to the $2,650 zone, and then further to $2,550. This corrective move will allow the market to consolidate before the next significant push.
Two Possible Scenarios for 2025–2026:
Scenario 1: Bullish Channel and New High by April 2025
Timeline: Between January and February 2025, XAU/USD could start forming a clear bullish channel.
Target: This structure could lead to a new all-time high in the $2,800–$2,900 range by March–April 2025.
Outlook: This scenario represents a continuation of the bullish trend with steady growth.
Scenario 2: Prolonged Range and Significant Drop by 2026
Timeline: Gold may remain in a range-bound phase until November 2025, oscillating between key levels ($2,700-$2,500)
Target: A lack of upward momentum during this time increases the probability of a significant decline to $2,300 by May 2026.
Outlook: This scenario reflects market exhaustion after prolonged consolidation, leading to a bearish correction.
Key Levels to Watch:
Resistance: $2,793 (ATH), $2,800–$2,900 (potential new high).
Support: $2,650, $2,550 (corrective phases), $2,300 (long-term bearish target).
Summary:
XAU/USD is preparing for a retest of the $2,793 all-time high, followed by a likely cooling phase to $2,650–$2,550. Beyond this, gold’s trajectory depends on its ability to establish a bullish channel in early 2025:
Bullish Outcome: New ATH of $2,800–$2,900 by April 2025.
Bearish Outcome: Prolonged range followed by a drop to $2,300 by May 2026.
Traders and investors should monitor key levels and the market’s ability to build a rounded bullish pattern to gauge the next significant move.
Gold Short: Capitalizing on Sunday Open RejectionGold has shown a strong rejection of the $2,650 price area after retracing to the Sunday open levels, aligning with the prevailing higher time frame (HTF) bearish trend. This trade is engaged to capitalize on the downside potential as the price fails to break the dynamic resistance at $2,650. With the support of the HTF momentum and a clear rejection, the trade setup focuses on targeting the lower support levels in the $2,610-$2,600 zone while maintaining a disciplined approach to risk management.
Technical Analysis:
Daily Chart:
• Price struggles below the mildly bearish 20 SMA.
• Both 100 and 200 SMAs maintain their bearish slopes, confirming the downtrend.
• Momentum indicators remain neutral, supporting the absence of bullish reversal signs.
4-Hour Chart:
• XAU/USD trades below the flat 20 SMA while hovering near a directionless 100 SMA.
• The 200 SMA around $2,690 acts as dynamic resistance, pushing prices lower.
• Indicators are aligned with bearish momentum, suggesting further downside.
• Support Levels: $2,626.70, $2,611.35, $2,598.70
• Resistance Levels: $2,643.30, $2,655.00, $2,671.55
Fundamental Analysis:
The US Dollar’s strength continues to weigh on Gold prices, driven by robust macroeconomic data:
• ISM Manufacturing PMI: Revised upward to 49.7, better than expected, supporting USD strength.
• Wall Street Sentiment: Mixed trading as geopolitical tensions between the US and Russia persist.
• Upcoming Events: Markets anticipate key US employment data, particularly the Nonfarm Payrolls (NFP) report on Friday, which could bring additional volatility to XAU/USD.
Trade Management:
• Entry near $2,645 with clear rejection signals.
• Stop Loss: Placed above $2,659 to manage risk efficiently.
• Targets: Initial take profit at $2,622, with a potential extension to $2,610.
• Risk Management: Adhering to the bearish trend, the trade will be closely monitored, especially as the US Nonfarm Payrolls data approaches.
• Risk Management: Trail stops as price moves lower. Monitor market reactions closely, especially around major support and resistance zones, and adapt as Nonfarm Payrolls approach.
Note: Please remember to adjust this trade idea according to your individual trading conditions, including position size, broker-specific price variations, and any relevant external factors. Every trader’s situation is unique, so it’s crucial to tailor your approach to your own risk tolerance and market environment.
XAUUSD Trade Log - Monthly Swing TradeXAUUSD Swing Long Trade
This is a high-confidence swing trade setup with multiple confluences across monthly and daily timeframes.
Trade Details :
- Risk: 5% of capital
- Risk-Reward Ratio (RRR): 1:4
- Entry: Anywhere within the monthly Fair Value Gap (FVG), which has a 90-point range. You may DCA (Dollar Cost Average) into your position for better flexibility, though this is discretionary.
- Confluence: Signals align from the monthly down to the daily charts, indicating strong bullish momentum.
Macro Factors Supporting Gold Longs :
- Safe-Haven Demand: Global geopolitical tensions, including conflicts in the Middle East and Eastern Europe, have driven investors toward gold as a risk-averse asset.
- Rising Recession Risks: With several central banks maintaining high interest rates for prolonged periods, economic slowdown fears are rising, further boosting gold demand.
- Central Bank Purchases: Central banks worldwide, especially in emerging markets, continue to accumulate gold reserves to reduce reliance on the US dollar.
- Inflation Hedging: Persistent inflation concerns make gold an attractive hedge, particularly as real yields show signs of plateauing.
- Weakened Dollar Outlook: A potential pivot in US Federal Reserve policy could weaken the dollar, which would likely support gold prices in the medium to long term.
This swing trade offers a strong opportunity to capitalize on the current macroeconomic and technical landscape favoring gold's upward momentum. Stay aware of any unexpected fundamental developments that could influence the market.
XAUUSD Trade LogXAUUSD Buy Signal:
Entry within the daily Fair Value Gap (FVG), aiming for a 1:3 Risk-Reward Ratio (RRR) with 1% risk. While there is a conflicting bearish FVG that might obstruct the path to the take-profit (TP) level, the trade setup remains valid and will be executed regardless.
Key Details:
- Risk: 1%
- RRR: 1:3
- Entry: Daily FVG in a discounted zone
- TP: Positioned below the bearish FVG to mitigate resistance
- Note: Monitor price action near the bearish FVG as it may create challenges for the bullish move.
Drop it Like it's HotRight now price is in a much larger descending channel - indicating we are in an overall down trend. We can see from looking left there is what most retail traders would call a demand zone in anticipation for the market to push higher.
HOWEVER, keeping in mind the higher TF (Daily) and the fact that "the trend is our friend" we can see that price is in fact in this downward descending channel. I will only be looking for SHORT positions this week, especially towards the end of this week with the LAST NFP of 2024. Man, time flew by!
So far price is pushing pretty aggressively towards the downside and I will look for further confirmations (on the lower TF - 15m & 5m) for my exact entries. Thanks for checking out my idea and Happy trading!!
Strong Economy = Weak Gold | XAUUSDPositive unemployment data is indirectly bad news for gold. Because good unemployment data = low probability of recession , Gold price was going up because of the probability of crisis increases.
That's why I think gold will lose this tiny reaction from the range low point at full speed and go to the boxes below.
I don't overcomplicate things and add a ton of dirty crap to my charts, but you can check out the success of my analysis below.
I approach trading with confidence backed by experience and past success in identifying high-probability setups.
While I don’t claim to be the best, my track record speaks for itself, and I strive to let my analysis and results do the talking. Watch these levels closely—markets can confirm what charts already whisper. Let’s see how this plays out together.
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