Baxia Markets News

XAUUSD Consolidates Amid Bullish Sentiment and Key Levels

Written by Baxia Markets | Apr 18, 2024 12:03:31 PM

XAUUSD has been consolidating over the past three trading days, encountering resistance below a bearish engulfing candlestick pattern. Despite this consolidation, the overall sentiment remains bullish, supported by various technical indicators and key levels.

The market currently floats above the value area, as indicated by the volume profile. A key support level is identified at $2328, representing the lower boundary of the value area. A break below this level could shift the market sentiment to bearish.

EMA 50 and 200 further reinforce the bullish sentiment, with the EMA 50 floating above the EMA 200. The Bollinger Bands suggest a potential rebound today, as the market bounced from the lower band towards the upper side. A breakout above the upper band could signal a return of bullish sentiment.

Oscillator indicators, while showing mixed signals, lean towards bullishness. The MACD's signal line has crossed above the zero line, indicating a bullish sentiment. The RSI is approaching the 60% level and a breakout above this level could push the market towards the recent key resistance at the swing high of $2430.

In summary, XAUUSD is consolidating within a range, encountering resistance from a bearish engulfing pattern. However, the overall tone remains bullish, supported by key levels and technical indicators. Traders and investors should monitor the $2328 support level and the $2430 resistance level for potential breakout or breakdown scenarios. With the prevailing bullish sentiment, XAUUSD may continue its upward trajectory if key resistance levels are breached.

 

Key Takeaways:

  1. XAUUSD ranges over the last 3 trading days with resistance under bearish engulfing pattern.
  2. Bullish sentiment remains strong despite market consolidation.
  3. Volume profile indicates support at $2328; break below may turn market bearish.
  4. EMA 50 above EMA 200 signals bullish sentiment for XAUUSD.
  5. MACD and RSI show mixed but leaning bullish signals for XAUUSD.

Key Economic Releases to Watch Today

USD, Initial Jobless Claims

Forecast 215K vs Previous 211K

USD, Philadelphia Fed Manufacturing Index 

Forecast 1.5 vs Previous 3.2

USD, Existing Home Sales

Forecast 4.20M vs Previous 4.38M

 

 

 

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