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Technical Analysis XAUUSD : 2021-04-07

Recommendation for Gold:

Buy
Strong SellSellNeutralBuyStrong Buy

Above 1745

Buy Stop

Below 1675

Stop Loss

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Senior Analytical Expert
Articles 1735
IndicatorValueSignal
RSI Buy
MACD Buy
MA(200) Neutral
Fractals Neutral
Parabolic SAR Buy
Bollinger Bands Neutral

Chart Analysis

IFC Markets Tech Analysis

On the daily timeframe, XAUUSD: D1 breached up the downtrend resistance line. A number of technical analysis indicators formed signals for further growth. We do not exclude a bullish move if XAUUSD rises above the last upper fractal: 1745. This level can be used as an entry point. We can place a stop loss below the minimum since June 2020, the last lower fractal, the lower Bollinger line, and the Parabolic signal: 1675. After opening the pending order, we can move the stop loss following the Bollinger and Parabolic signals to the next fractal minimum. Thus, we change the potential profit/loss ratio in our favor. After the transaction, the most risk-averse traders can switch to the four-hour chart and set a stop loss, moving it in the direction of the bias. If the price meets the stop loss (1675) without activating the order (1745), it is recommended to delete the order: the market sustains internal changes that have not been taken into account.

Fundamental Analysis

Precious metals rose amid the ongoing coronavirus pandemic and the weakening US dollar. Will the XAUUSD quotes continue to rise?

The coronavirus pandemic continues despite the creation of several vaccines. The number of patients has increased in India, the United States and European countries. According to the World Health Organization (WHO), the number of people infected in the world has been increasing for the 6th week in a row. At present, about 4 million people are infected in the world every week and more than 70 thousand people die. The US dollar index is declining as President Joe Biden’s new plan to allocate $2 trillion for the development of American infrastructure is being considered. Earlier, a $1.9 trillion fiscal stimulus package was adopted. Additional funds are planned to be allocated within 8 years. This infrastructure plan may be adopted by the Senate in mid-summer. Investors fear that massive economic stimulus might boost US inflation. This negatively affects the dollar exchange rate and supports the demand for precious metals.

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This overview has an informative and tutorial character and is published for free. All the data, included in the overview, are received from public sources, recognized as more or less reliable. Moreover, there is no guarantee that the indicated information is full and precise. Overviews are not updated. The whole information in each overview, including opinion, indicators, charts and anything else, is provided only for familiarization purposes and is not financial advice or а recommendation. The whole text and its any part, as well as the charts cannot be considered as an offer to make a deal with any asset. IFC Markets and its employees under any circumstances are not liable for any action taken by someone else during or after reading the overview.