The price of gold against the US dollar, which was at 1,936.74, continued to decrease as the yields of US bonds, especially the 10-year bonds, rose above 4%.
…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for FREE REGISTER to read full post below containing analysis. In case of any error or you think you are not able to read the full post below, please email us at support#nehcap.com [lwa][/s2If] [s2If current_user_can(access_s2member_level1)]
- XAU/USD extended its drop as US bond yields, particularly 10s, climbed above 4%.
The pair currently trades last at 1936.74.
The previous day high was 1966.08 while the previous day low was 1941.33. The daily 38.2% Fib levels comes at 1950.78, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1956.63, expected to provide resistance.
Gold price extends its drop to two consecutive days as US bond yield climb due to market sentiment shifting sour. That, alongside US Dollar (USD) strength following an upbeat US jobs report, is the primary driver of XAU/USD’s price action. At the time of writing, the XAU/USD is trading at $1,937.75, down 0.73%.
Wall Street treads water as sentiment remains depressed following Fitch’s downgrading of debt of the United States (US). Despite that, US Treasury bond yields rose, led by the US 10-year benchmark note rate at 4.067%, which gains four basis points after reaching 4.126% during the North American session.
Fitch’s revision to US Government debt from AAA to AA+ was blamed “on a perceived deterioration in US governance, which it said gave less confidence in the government’s ability to address fiscal and debt issues,” according to sources cited by Reuters. Hence, market participants sought safety, with the US Dollar and the Japanese Yen (JPY) leaders in Wednesday’s session.
In the meantime, the ADP National Employment report flashed that private hiring grew by 324K exceeding estimates of 189K, ahead of July’s US Nonfarm Payrolls data on Friday, with forecasts circa 200K people added to the workforce.
Regarding Tuesday’s data, the ISM Manufacturing PMI came at recessionary territory below the 50 figure for the ninth straight month, though it continued to improve; compared to June’s 46, it arrived at 46.4. Even though it was an improvement, the trend appears to slow down.
In the meantime, the US Dollar Index (DXY), a measure of the buck’s value against a basket of six currencies, advances 0.54% at 102.514, prolonging its gains to six straight days, with traders eyeing a break above the 100-day EMA at 102.561.
Although XAU/USD achieved a higher high on Friday 20 daily high at $1,987.42, the XAU/USD retraced back below the $1,950 area, extending its losses below the 20 and 50-day Exponential Moving Averages (EMAs), at $1,952.02 and $1,951.05, respectively. Additionally, XAU/USD dropped under the 100-day EMA, opening the door for further downside. Nevertheless, the emergence of a ‘bullish flag’ can pave the way for further upside, with prices edging toward $2,000. On the flip side, if XAU/USD falls below $1,933.07, that would exacerbate a dip toward the 200-day EMA at $1,906.99.
Technical Levels: Supports and Resistances
XAUUSD currently trading at 1938.29 at the time of writing. Pair opened at 1944.31 and is trading with a change of -0.31 % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 1938.29 |
| 1 | Today Daily Change | -6.02 |
| 2 | Today Daily Change % | -0.31 |
| 3 | Today daily open | 1944.31 |
The pair is trading below its 20 Daily moving average @ 1951.54, below its 50 Daily moving average @ 1945.84 , below its 100 Daily moving average @ 1968.4 and above its 200 Daily moving average @ 1890.75
| Trends | Trends.1 | |
|---|---|---|
| 0 | Daily SMA20 | 1951.54 |
| 1 | Daily SMA50 | 1945.84 |
| 2 | Daily SMA100 | 1968.40 |
| 3 | Daily SMA200 | 1890.75 |
The previous day high was 1966.08 while the previous day low was 1941.33. The daily 38.2% Fib levels comes at 1950.78, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1956.63, expected to provide resistance.
Note the levels of interest below:
- Pivot support is noted at 1935.07, 1925.82, 1910.32
- Pivot resistance is noted at 1959.82, 1975.32, 1984.57
| Levels | Levels.1 |
|---|---|
| Previous Daily High | 1966.08 |
| Previous Daily Low | 1941.33 |
| Previous Weekly High | 1982.20 |
| Previous Weekly Low | 1942.65 |
| Previous Monthly High | 1987.54 |
| Previous Monthly Low | 1902.77 |
| Daily Fibonacci 38.2% | 1950.78 |
| Daily Fibonacci 61.8% | 1956.63 |
| Daily Pivot Point S1 | 1935.07 |
| Daily Pivot Point S2 | 1925.82 |
| Daily Pivot Point S3 | 1910.32 |
| Daily Pivot Point R1 | 1959.82 |
| Daily Pivot Point R2 | 1975.32 |
| Daily Pivot Point R3 | 1984.57 |
[/s2If]
Download Nehcap EAWe have two EAs that are operational on our LIVE accounts.
- EA-FIX: Check out the details here. Download EA-FIX . EA-FIX is a non-grid HFT scalper.
- EA-GROWTH: High quality low dd EA using trend grids. Download EA_GROWTHJoin Our Telegram Group
