Weekly Forecast

Ease your trading with our fundamental predictions and technical analysis

XAU/USD Weekly Forecast (22nd March 2021 – 26th March 2021)

Mar 20, 2021 05:30

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Fundamental view:

The yellow metal moved up and down against greenback in the previous week. The US dollar’s market valuation, rather than risk sentiment, remained the primary driver of XAU/USD’s movements throughout the week. Powell’s dovish tone and the FOMC’s commitment to continue to support the economic recovery triggered a USD selloff late on Wednesday and helped XAU/USD gain traction. However, the benchmark 10-year US Treasury bond yield extended its rally on Thursday and added strength to the USD.

“Gold as an asset class has moved up on the investors’ lists. The precious metal was irrelevant for many a few weeks ago; there was more action in other markets. But now, it moved itself back up. Gold is a player on the field again after being benched for a while,” said a Strategist.              

The major economic events deciding the movement of the pair in the next week are Fed Chair Powell Speech at Mar 22, Fed Chair Powell Testimony at Mar 23, Core Durable Goods Orders monthly report at Mar 24, GDP quarterly report, Initial Jobless Claims at Mar 25, PCE Price Index at Mar 26 for US.

XAU/USD Weekly outlook:

Technical View:

Last week’s high was 0.89% higher than the previous week. Maintaining high at 1755.5 and low at 1719.3 showed a movement of 362 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 1760.7 may open a clean path towards 1776.2 and may rise upwards to 1796.9. Should 1703.8 prove to be unreliable support, the XAUUSD may sink downwards 1724.5 and 1688.3 respectively. In H4 chart Ascending Triangle breakout favors prospects of a bullish trend. Also to be noted Bullish engulfing formation exerts the expectation of uptrend for the pair.

Preference
Buy: 1739.1 target at 1773.4 and stop loss at 1717.4

 

Alternate Scenario
Sell: 1717.4 target at 1682.3 and stop loss at 1739.1
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