US dollar leaps as Fed provide hawkish rhetoric.
“Dollar-bull revitalized after Fed officials deliver hawkish rhetoric.”
Federal Reserve officials rattled the market, prompting US dollar to hit one-month high on yesterday. According to report, St Louis Fed President James Bullard commented that he supports for another 75-basis point rate hike in September, citing concerns over high inflation in the US. On a similar notion, San Francisco Fed President Mary Daily emphasized that a rate hike by 50 or 75 basis point would be reasonable way moving forward.
Quick recap on XAUUSD
Overall, the commodity continues to trade within a broad trading range since a year ago.
XAUUSD Weekly Technical Analysis
From weekly perspective, while XAUUSD has recently rebounded from the lower level, it failed to overcome 1804. This may indicate an overturn of bullish support from the downside.
XAUUSD Daily Technical Analysis
From daily perspective, the commodity has recently closed below 1758, together with bearish signal formation on the MACD.
Trading Idea
ORDER: SELL STOP
ENTRY: 1745
STOP LOSS: 1765
Target 1: 1720
Target 2: 1695
ZFX Analyst’s Comment
XAUUSD remain pressured from the upside, signifying major selling forces which limit any recovery from the downside.
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Risk Warning: The above content is for reference only, and does not represent ZFX’s position. ZFX does not assume any form of loss caused by any trading operations carried out in accordance with this article. Please be firm in your thinking and do the corresponding risk control.
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