Baxia Markets
May 14, 2024

Gold Prices Test EMA 50 Support, Long-term Uptrend Intact

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In today's Asian trading session, XAUUSD (Gold/USD) experienced a decline, testing the 50-day Exponential Moving Average (EMA) for support. Despite this dip, the long-term trend remains bullish as indicated by the 50 EMA's position above the 200 EMA. This alignment underscores a sustained upward momentum in the market.


On the 1-hour time frame, gold prices are currently trading above the Ichimoku Cloud, a strong indicator of a bullish trend. This short-term perspective aligns with the longer-term view, suggesting that the market is poised for potential gains.

Gold Prices Test EMA 50 Support, Long-term Uptrend Intact

Traders should keep a close eye on critical price levels. The previous swing high at $2400 serves as a significant resistance point. If prices break above this level, it could signal a continuation of the bullish trend. On the downside, the key support level is identified at $2277. A breach below this support could indicate a potential reversal or consolidation phase.


Further supporting the bullish outlook, the Moving Average Convergence Divergence (MACD) indicator shows positive signs. The signal line has curved upwards and remains above the zero line, suggesting that bullish momentum is returning. Additionally, the Relative Strength Index (RSI) has maintained a position above 50%, following a defense against dropping below the 40% level. This indicates that buyers are still in control, reinforcing the bullish sentiment.


Overall, the short-term trend for XAUUSD is bullish. The convergence of technical indicators, such as the EMA alignment, Ichimoku Cloud positioning, MACD, and RSI, all point towards a potential continuation of the upward trend. However, traders should remain vigilant around the key resistance at $2400 and support at $2277, as these levels will be crucial in determining the market's next move.

In conclusion, despite the recent dip, XAUUSD continues to exhibit strong bullish signals across multiple technical indicators. The market's ability to hold above key support levels and breach resistance could dictate the future direction of gold prices.

Key Economic Releases to Watch Today

EUR, German CPI (MoM)

Actual 0.5% vs Forecast 0.5% vs Previous 0.4%

EUR, German CPI (YoY)

Actual 2.2% vs Forecast 2.2% vs Previous 2.2%


 Forecast 0.2% vs Previous 0.2%


 Forecast 0.3% vs Previous 0.2%



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