General analysis XAUUSD for 29.09.2021
Current Dynamics
The XAUUSD is showing signs of recovery on Wednesday, which is quite logical given the difficult situation with the US sovereign debt. Yesterday the US dollar strengthened after the "hawkish" speech of the head of FRS Jerome Powell. The main catalyst for the strengthening of the U.S. dollar was the official's comments on inflation. Powell once again said that the price pressure is temporary and the Fed expects inflation to reach the target levels of 2% in the medium term.
At the same time, the sale of ten-year bonds, amid a strong rise in their yields, increases the risks of default in the U.S. Treasury Secretary Janet Yellen said that already on 18 October the US is at risk of having no liquidity funds, and it is not clear whether the Treasury will be able to fulfill its obligations after that date. In this regard, it would be logical for investors to switch to gold as a "safe haven" actives.
Today at 16:00 (GMT+2) there will be released data from the Pending Home Sales Index. At 17:45 (GMT+2), Fed Chief Powell is scheduled to speak. Considering the situation with the national debt and the absence of unanimity on the issue among U.S. lawmakers, the publication of macroeconomic statistics will have less impact on the market. Market participants are turning their attention to politicians' statements.
Support and resistance levels
On the 4h chart, the instrument is recovering at the bottom part of the Bollinger Bands. The nearest resistance is the level of 1745. The indicator turns sideways and the price range is not significantly reduced, indicating the formation of an uptrend. MACD histogram is holding a sell signal. Stochastic has entered the overbought area, a strong sell signal may be formed within 1-2 days.
- Support levels: 1705.50, 1818.85, 1730.15, 1741.40.
- Resistance levels: 1746.65, 1751.90, 1762.35, 1775.65, 1785.00.
Trading scenarios
- It is possible to open long positions above the level of 1748.85 with a target of 1770.50 and a stop-loss at 1737.30. Implementation period: 1 day.
- Short positions should be opened below the level of 1738.30 with a target of 1718.15 and a stop-loss at the level of 1749.00. Implementation period: 1-2 days.