XAUUSD nears key support after a deep 61.8% Fibonacci retracement. Despite its traditional safe haven status, gold faces a strong dollar challenge. Today's US CPI release is pivotal, signaling the Fed's rate hike stance. Economists anticipate lower CPI at 4.3% (previous 4.7%) and no change in US core CPI at 0.2% (previous 0.2%). A better-than-expected CPI outcome could sustain USD strength and boost rate hike prospects.
The key support zone is at 1903-1909
The key resistance zone is at 1925-1930
Technically XAUUSD is Bearish due to several factors
MA 50 is under MA 20
CCI is below 0 level
MACD signal line is below 0 level
The upcoming US CPI and Core CPI announcements carry the potential to induce high volatility in this trading pair. If the results surpass expectations, it may trigger a breach of the key support zone. Conversely, a mixed or lower-than-forecasted outcome could prompt a shift in sentiment for XAUUSD, turning it bullish.
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