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The price of gold edged higher and now is trading at 2,022 at the time of writing. It has climbed as much as 2,026 today, registering a new high. You knew from yesterday's analysis that the XAU/USD is strongly bullish and it could resume its growth.
Surprisingly or not, the yellow metal jumped higher, even though the US data came in better than expected earlier today. The ISM Services PMI was reported at 51.9 points above the 51.8 points estimated, while ADP Non-Farm Employment Change was reported at 296K versus 148K expected. Still, XAU/USD extended its leg higher ahead of the FOMC. As you already know, the FED is expected to deliver a 25 bps hike again. It seems that the traders are expecting a dovish or neutral speech.
Technically, you knew from my previous analysis that Gold could resume its growth after jumping and closing above the R1 (2,007) and above the 2,015 static resistance.
I told you yesterday that the rate could retest the R1 before jumping higher. A small retreat and a short-term consolidation were natural as the rate needed more bullish energy.
The R1 (2,007) retest was seen as a new buying signal. Also, the bullish closure above yesterday's high of 2,019 represented a buying opportunity. Further growth could be confirmed also by a bullish closure above the R2 (2,026).
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*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
The GBP/USD pair also showed a downward movement on Wednesday, for which there were no valid reasons. There were no noteworthy events in the UK yesterday, while the U.S. released
Wednesday's Trade Analysis: 1H chart of the EUR/USD pair. The EUR/USD currency pair continued its downward movement within the sideways channel on the hourly time frame on Wednesday —
Analysis of Tuesday's Trades 1H Chart of GBP/USD On Tuesday, the GBP/USD pair corrected downward after another surge on Monday. No fundamental or macroeconomic reasons supported such movements on either
Analysis of Tuesday's Trades 1H Chart of EUR/USD On Tuesday, the EUR/USD currency pair continued to trade within a sideways channel, which is now visible on virtually any timeframe
On Tuesday, the GBP/USD currency pair failed to continue the upward movement it had started so vigorously on Monday. It is worth recalling that there were no solid reasons
The EUR/USD currency pair continued to trade within a sideways channel throughout Tuesday. The flat movement is visible in the chart above. Last week, the pair briefly broke
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