XAU AUD Technical Analysis – XAU AUD Trading: 2022-01-17

 XAU AUD Technical Analysis – XAU AUD Trading: 2022-01-17

XAU AUD Technical Analysis.

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XAU AUD Technical Analysis Summary

Buy Stop: Above 2540

Stop Loss: Below 2460

IndicatorSignal
RSINeutral
MACDNeutral
MA(200)Neutral
Bollinger BandsBuy
Parabolic SARBuy
FractalsBuy

 

XAU AUD Chart Analysis

XAU AUD Technical Analysis

On the daily timeframe, XAUAUD: D1 is in a long-term uptrend. Now it has formed a triangle, which must be broken up before opening a position. A number of technical analysis indicators formed signals for further growth. We do not rule out a bullish movement if XAUAUD rises above the latest high: 2540. This level can be used as an entry point. The initial risk limit is possible below the Parabolic signal, the lower Bollinger band and the 200-day moving average line: 2460. After opening a pending order, we move the stop following the Bollinger and Parabolic signals to the next fractal low. Thus, we change the potential profit/loss ratio in our favor. The most cautious traders, after making a trade, can switch to a four-hour chart and set a stop loss, moving it in the direction of movement. If the price overcomes the stop level (2460) without activating the order (2540), it is recommended to delete the order: there are internal changes in the market that were not taken into account.

Fundamental Analysis of PCI – XAU AUD

In this review, we propose to consider a personal composite instrument (PCI) “XAUAUD”. It reflects the price dynamics of gold against the Australian dollar. Will the XAUAUD quotes continue to rise?

An upward movement is observed with an increase in the price of gold and a weakening of the Australian dollar. Demand for precious metals may be supported by record inflation in the US. In December, it was 7% y/y, which is the maximum since June 1982. At the same time, the yield of bonds 10-year U.S. Treasury is now equal to only 1.77% per annum. In the summer of 1982, their yield was much higher and amounted to about 13.6% per annum. Last week, Fed Chairman Jerome Powell said it could take several months for the Fed to decide whether to start cutting its $9 trillion balance sheet. Investors have decided that the Fed will focus on supporting economic growth in the US. At the same time, high inflation may persist for some time. The weakening of the Australian dollar may be caused by the spread of the Omicron coronavirus in Australia. Because of this, the Reserve Bank of Australia may refrain from making any statements about the tightening of its monetary policy at the meeting on February 1. No rate increase (+0.1%) is expected. January 20 will be published data on the labor market (Australia Employment Change), which may affect the Australian dollar. In addition, the dynamics of XAUAUD may depend on China’s GDP data for the 4th quarter, which will be released on January 17. Recall that in the United States on January 17 there will be a holiday – Martin Luther King, Jr. day.

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