Fundamental view:

Non-Farm Employment Change at 1st  July as a catalyst for the downtrend move for dollar and FOMC Member Williams Speaks of the last week at 30th June 2020 created a favorable atmosphere for USD and a bearish trend was reflected for the pair in the previous week.

Investor’s remain hopeful on the economic recovery as economies will reopen from lockdowns might have given dollar a firm position against USD hence investors showed interest in dollar instead of the safe haven asset – Gold.

The major economic events deciding the movement of the pair in the next week are ISM Non-Manufacturing PMI at Jul 06, IBD/TIPP Economic Optimism at Jul 07, Consumer Credit monthly report at Jul 08, Unemployment Claims at Jul 09, and Core Producer Price Index (PPI) monthly report at Jul 10 for US.

XAU/USD Weekly outlook:

Technical View:

Last week’s high was 0.55% higher than the previous week. Maintaining high at 1789.1 and low at 1757.4 showed a movement of 317 pips.

In the upcoming week we expect XAU/USD to show a bullish trend.  The currency pair is trading above the 100 Simple Moving Average and the MACD trades to the upside. A solid breakout above 1789.1 may open a clean path towards 1804.9 and may take a way up to 1820.8. Should 1757.4 prove to be unreliable support, the XAUUSD may sink downwards 1741.5 and 1725.7 respectively. In H4 chart breakout of a Diamond to the upside and formation favors prospects of a bullish trend. Also to be noted Bullish Hammer formation exerts the expectation of uptrend for the pair.