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Old 05-06-2019, 12:01
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Default Re: Tifia Daily Market Analytics

XAU/USD: Current Dynamics

On Wednesday, gold rises in price for the 5th day in a row. The XAU / USD pair is trading at the beginning of the European session near the mark of 1336.00, 130 points above the support level of 1323.00 (January and March highs), but 80 points ($ 8) below the local resistance level of 1346.00 (multi-monthly and annual highs).
While XAU / USD is above the key support level of 1277.00 (Fibonacci level of 61.8% of the correction to the wave of decline since July 2016 and ЕМА200 on the daily chart), the bullish trend remains.
There is a strong positive impulse that supports XAU / USD and it emerged after a sharp weakening of the dollar, aggravating trade contradictions between the US and China, and Mexico, as well as after yesterday’s speech by Fed Chairman Jerome Powell. He said that the Fed, if necessary, will take "appropriate measures to support growth" of the economy.
Usually, when the Fed raises the interest rate, the price of gold decreases as the cost of its acquisition and storage increases. With the easing of the monetary policy of the Fed and the growing uncertainty in the financial markets, the demand for gold and its price increase.
An alternative scenario implies a resumption of dollar growth and a decline in XAU / USD to a key support level of 1277.00.
The signal for the development of this scenario will be the breakdown of the short-term support level of 1323.00 (ЕМА200 on the 15-minute chart and the highs of January, March). Farther targets for the decline are at support levels of 1197.00 (November lows), 1185.00 (Fibonacci level 23.6%), 1160.00 (2018 lows).
Support Levels: 1323.00, 1310.00, 1302.00, 1291.00, 1282.00, 1277.00, 1268.00, 1248.00
Resistance Levels: 1346.00, 1357.00, 1365.00, 1370.00

Trading Scenarios

Sell Stop 1322.00. Stop-Loss 1340.00. Take-Profit 1310.00, 1302.00, 1291.00, 1282.00, 1277.00, 1268.00, 1248.00
Buy Stop 1340.00. Stop Loss 1322.00. Take-Profit 1346.00, 1357.00, 1365.00, 1370.00

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