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Gold vs AUD Technical Analysis - Gold vs AUD Trading: 2020-10-21
XAU AUD Technical Analysis Summary
Above 2700
Buy Stop
Below 2600
Stop Loss
| Indicator | Signal |
| RSI | Buy |
| MACD | Neutral |
| MA(200) | Neutral |
| Fractals | Buy |
| Parabolic SAR | Buy |
| Bollinger Bands | Buy |
XAU AUD Chart Analysis
XAU AUD Technical Analysis
On the daily timeframe, XAUAUD: D1 exceeded the downtrend resistance line. A number of technical analysis indicators formed signals for further growth. We do not rule out a bullish move if XAUAUD rises above its last maximum: 2700-2710. This level can be used as an entry point. We can place a stop loss below the Parabolic signal and the lower Bollinger line: 2600. After opening a pending order, we can move the stop loss following the Bollinger and Parabolic signals to the next fractal low. Thus, we change the potential profit/loss ratio in our favor. After the transaction, the most risk-averse traders can switch the 4-hour chart and place a stop loss, moving it in the direction of the bias. If the price meets the stop loss (2600) without activating the order (2700), it is recommended to delete the order: some internal changes in the market have were not been taken into account.
Fundamental Analysis of PCI - XAU AUD
In this review, we propose to consider the XAUAUD Personal Composite Instrument (PCI). It reflects the price action of Gold vs the Australian dollar. Is the growth of XAUAUD quotes possible?
XAUAUD moves up with the weakening of the Australian dollar and the rise in gold prices. The main negative factor for the Australian currency is the plans of the RBA to ease its monetary policy and, in particular, to cut the rate to 0.1% from the current 0.25%. This was noted in the RBA Meeting minutes. In theory, the rate could be lowered at the next meeting on November 3. On Tuesday, Assistant Governor RBA Chris Kent said that his department didn't not rule out negative rates, as well as a significant currency issue aimed at bonds buybacks (following the example of the US Federal Reserve's QE program). In turn, gold may rise in price amid growing global risks due to the 2nd wave of coronavirus, uncertainty around the US presidential election, as well as US-China foreign trade disputes. In addition, demand for precious metals may increase if inflation rises and rates remain low in the most developed countries.
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