Fundamental view:

US Consumer Credit report at 8^th July pressurized dollar hence creating bullish trend whereas US IBD/TIPP Economic Optimism report released at 6^th July as a catalyst for the uptrend move for dollar and US Unemployment Claims at 9th June 2020 created a favorable atmosphere for USD hence fabricating a bearish trend for the pair. Overall the pair showed a positive nod last week as the worries of rising cases of covid 19 in US made investors away from USD and favored a bullish trend last week. 

The major economic events deciding the movement of the pair in the next week are USD Core Consumer Price Index (CPI) at Jul 14, Crude Oil Inventories, USD Treasury Currency Report at Jul 15, Philly Fed Manufacturing Index, Unemployment Claims at Jul 16, USD Prelim UoM Consumer Sentiment at Jul 17.

Investors should favor stocks and gold over bonds and cash because the latter offer a negative rate of return and central banks will print more money, according to Bridgewater Associates’s Ray Dalio, founder of the world’s largest hedge fund. This recent news creates an uptrend expectation of pair in coming week.

XAU/USD Weekly outlook:

Technical View:

 Last week’s high was 16% higher than the previous week. Maintaining high at 1817.8 and low at 1769.8 showed a movement of 480 pips.

In the upcoming week we expect XAU/USD to show a bullish trend.  The Instrument is trading above the 100 Simple Moving Average and the MACD trades to the downside. A solid breakout above 1820.8 may open a clean path towards 1843.3 and may take a way up to 1868.8. Should 1772.8 prove to be unreliable support, the XAUUSD may sink downwards 1747.3 and 1724.7 respectively. In H4 chart breakout of a flag upside may favor prospects of a bullish trend. Also to be noted bullish hammer formation exerts the expectation of uptrend for the pair.