In this comprehensive analysis, Ultima Markets brings you an insightful breakdown of the XAUUSD for 2nd MAY 2024.
Key Takeaways
- Conditions for interest rate cuts: Federal Reserve announced their conclusion on the latest policy meeting, with the central bank quoting possible weakness in labor market and depreciation in inflation.
- The probability of raising interest rates: In a press conference, Fed Chair Jerome Powell emphasized that raising interest rates is not necessary at the moment due to recent economic progression. He suggests that current policy is still sufficient to tame inflation unless otherwise suggested.
Technical Analysis
Daily Chart Insights
- Stochastic Oscillator：The indicator is about to enter an oversold area, and the overall slope of the indicator is starting to slow down, indicating that the short-term bearish trend may take a break.
- Moving average support: After falling below the support neckline, gold prices have clearly seen the end of the bullish trend. Currently, gold prices are hindered by the red 33 day moving average. If they continue to break, they will look towards the black 65 day moving average. On the contrary, gold is seen as continuing to rebound and rise in the short term.
1-hour Chart Analysis
- Stochastic oscillator: The indicator sends a bullish signal in the oversold area, indicating the end of the downward trend in gold prices. It is worth noting that the fast line is approaching the median line, and the upward trend may be hindered in the short term.
- Wolfe Wave: The recent downward trend of gold seems to have formed a Wolf Wave, with point 4 rebounding between points 1 and 2. However, the current decline of point 5 is not sufficient to blindly judge the end of the downward trend.
Pivot Indicator
- According to the trading central in Ultima Markets APP, the central price of the day is established at 2307,
- Bullish Scenario: Bullish sentiment prevails above 2307, first target 2336, second target 2346;
- Bearish Outlook: In a bearish scenario below 2307, first target 2295, second target 2282.
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.
