FxNews—In our XAUUSD market analysis, we’re looking at the relationship between Gold (XAU) and the US Dollar (USD), which is often referred to as “Gold vs. US Dollar.”
XAUUSD Market Analysis – In Depth Ichimoku Guide
Gold is undergoing a correction phase after bouncing back from a support level. This means that the price of Gold has been increasing and has started to decrease. The instrument moves below the Ichimoku Cloud, a technical analysis tool to identify trend direction, potential support and resistance levels, and generate buy-sell signals. When the price is below the cloud, it suggests a bearish trend, indicating that it might be a good time to sell.
We anticipate testing the upper boundary of the Cloud at $1,860. This means the price may rise to this level before falling again, potentially down to $1,775. A rebound from the upper boundary of the bearish channel, a pattern on a chart that shows the price dropping over time, will confirm this downward trend.
However, this scenario could be canceled if the price breaks above 1885 and breaks the upper boundary of the Cloud. A breakout occurs when the price moves outside a defined boundary, in this case, the upper boundary of the Cloud. If this happens, it could mean further growth to 1915.
On the other hand, if there’s a breakout of the lower boundary of the corrective channel with the price securing under 1875, it would confirm our prediction of a decline. The corrective channel temporarily reverses an overall upward or downward trend.
Remember, these are just predictions based on current market trends and technical analysis. It’s always important to research and consider multiple factors when trading.
J.J Edwards is a finance expert with 15+ years in forex, hedge funds, trading systems, and market analysis.
