In this comprehensive analysis, Ultima Markets brings you an insightful breakdown of the XAUUSD for 29th December 2023.
Key Takeaways
- Tight liquidity: As the last trading day before New Year’s Day, many exchanges may close early today. Be wary of liquidity shortages.
- U.S. dollar is weak: As the market expects that the U.S. will quickly cut interest rates and the market balance will tighten next year, funds have flowed into other markets. However, due to the oversold dollar in the early stage, it currently needs to consolidate.
Technical Analysis
Daily Chart Insights
- Stochastic Oscillator: The fast line of the indicator is about to cross the slow line, suggesting that the current upward trend of gold prices will slow down in the short term.
- Price Action: After the gold price broke through the high of pin bar on Wednesday, it fell rapidly yesterday and was bearishly engulfed. The market is likely to usher in a correction.
1-hour Chart Analysis
- Stochastic Oscillator: The indicator enters the oversold area, short-term short forces have the upper hand, and short-selling opportunities need to wait for the indicator to get out of oversold.
- Moving average : After the gold price fell below the 65-period moving average, the blue 17-period moving average is not yet close to the 65-period moving average. In theory, when the short-term moving average is close to the long-term moving average, the price will form a retracement pattern. Wait for the retracement to appear and observe whether there are short selling opportunities.
Pivot Indicator
- According to the trading central in Ultima Markets APP, the central price of the day is established at 2076.00,
- Bullish Scenario: Bullish sentiment prevails above 2076.00, first target 2082.00, second target 2088.00;
- Bearish Outlook: In a bearish scenario below 2076.00, first target 2060.00, second target 2051.00.
Conclusion
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Disclaimer
Comments, news, research, analysis, price, and all information contained in the article only serve as general information for readers and do not suggest any advice. Ultima Markets has taken reasonable measures to provide up-to-date information, but cannot guarantee accuracy, and may modify without notice. Ultima Markets will not be responsible for any loss incurred due to the application of the information provided.
