Baxia Markets
July 01, 2024

XAUUSD: Bullish Momentum Building as Key Resistance Nears Breakout

market analysis header image

XAUUSD (Gold) is gaining traction during the European trading session, pushing towards last week's high, a key resistance level. This resistance zone is highlighted in an orange rectangle, confirmed by previous bearish engulfing candlesticks. Should the market break above and sustain this level, it could trigger a surge of aggressive buying from bullish traders.


On the other hand, key support is marked with a green rectangle, confirmed by two bullish engulfing candlesticks. This support zone has been a critical area for the bulls to defend, providing a solid foundation for the ongoing rally.image-png-Jul-01-2024-11-54-43-3633-AM

Technical Analysis

1-Hour Time Frame

Ichimoku Indicator: The Ichimoku cloud indicator signals a robust bullish sentiment. The Tenkan Sen, Kijun Sen, and Chikou Span are all positioned above the cloud, indicating strong upward momentum.

Volume Profile: The Volume Profile highlights the Point of Control (POC) as the price level with the highest traded volume. Currently, the price is positioned above the POC and the value area, suggesting strong bullish sentiment and increased trading activity at higher price levels.

Oscillators: Both short-term and medium-term indicators support the bullish outlook.

  • MACD: The MACD signal line is positioned above the zero line, reinforcing the bullish momentum.
  • RSI: The RSI is holding above the 40% level and has not dipped below this threshold since last Thursday, further confirming the bullish trend.


The overall outlook for XAUUSD is bullish. The price action suggests that the bullish momentum is still in its early stages, indicating potential for further upside in the coming days. Traders should watch for a decisive break above the key resistance level, as this could open the floodgates for aggressive buying, propelling the price higher. Conversely, maintaining the current support levels will be crucial for sustaining the upward trend.


  • Current Trend: Bullish
  • Key Resistance: Highlighted in orange, confirmed by bearish engulfing candlesticks.
  • Key Support: Highlighted in green, confirmed by bullish engulfing candlesticks.
  • Indicators: Ichimoku, Volume Profile, MACD, and RSI all point to continued bullish sentiment.
  • Outlook: Expect further gains if resistance is broken; support levels remain critical.


With the bullish momentum in its infancy, XAUUSD is poised for potential gains. Traders should monitor key resistance and support levels closely to capitalize on the prevailing bullish trend.

Key Takeaways:

  • XAUUSD is advancing, eyeing a breakout above last week's high.
  • Key resistance is crucial for triggering aggressive bullish action.
  • Support levels confirmed by bullish engulfing candlesticks provide a strong base.
  • Ichimoku, Volume Profile, MACD, and RSI all indicate bullish sentiment.
  • Bullish momentum is expected to continue with room for further upside.

Key Economic Releases to Watch Today

Time Currency Event Impact Actual Forecast Previous
06:00 AUD Judo Bank Manufacturing PMI Final Medium 47.2 47.5 47.5
06:50 JPY Tankan Large Manufacturers Index High 13 12 11
07:00 EUR ECB Forum on Central Banking Medium      
07:30 JPY Jibun Bank Manufacturing PMI Final Medium 50 50.1 50.4
08:45 CNY Caixin Manufacturing PMI High 51.8 51.2 51.7
12:00 JPY Consumer Confidence High 36.4 36.5 36.2
13:00 GBP Nationwide Housing Prices MoM Medium   0% 0.4%
13:00 GBP Nationwide Housing Prices YoY Medium   1.5% 1.3%
13:30 CHF Retail Sales YoY Medium   2.5% 2.7%
14:15 EUR HCOB Manufacturing PMI Medium   53.5 54
14:45 EUR HCOB Manufacturing PMI Medium   44.5 45.6
14:50 EUR HCOB Manufacturing PMI Final High   45.3 46.4
14:55 EUR HCOB Manufacturing PMI Final High   43.4 45.4
15:00 EUR HCOB Manufacturing PMI Final Medium   45.6 47.3
15:30 GBP BoE Consumer Credit Medium   £1.3B £0.73B
15:30 GBP Mortgage Lending Medium   £1.1B £2.41B
15:30 GBP Mortgage Approvals Medium   61K 61.14K
15:30 GBP S&P Global Manufacturing PMI Final Medium   51.4 51.2
19:00 EUR Inflation Rate YoY Prel High   2.3% 2.4%
19:00 EUR Inflation Rate MoM Prel Medium   0.2% 0.1%
20:45 USD S&P Global Manufacturing PMI Final Medium   51.7 51.3
21:00 USD ISM Manufacturing PMI High   49 48.7
21:00 USD ISM Manufacturing Employment Medium   51 51.1


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