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Gold Trading PLan This Week – XAUUSD Smart Trading and Big Profit
Hello traders, it’s Tradevietstock again! Today, I’ll start with a fundamental analysis before diving into this week’s trading signals for XAUUSD. Following last week’s impressive performance—where XAUUSD rose and surpassed our target—we’re now focused on helping retail traders maximize profits and seize fresh opportunities, as the bullish trend continues. Now, let’s dive into gold trading plan this week.
i. Fundamental analysis – Interest rate of regions
First, XAUUSD is closely tied to broader currency indices, particularly the DXY. Before diving into trading signals for Gold trading plan this week, let’s examine the bigger picture.
1. Japan and USDJPY
Japan is tackling inflation by raising interest rates, currently at 0.5%, while the U.S. sits at 4.5%. This wide interest rate gap continues to pressure the yen, driving USDJPY higher.
Over the past four years, the yen weakened as Japan maintained negative rates. Now, with gradual rate hikes, the yen’s decline may slow. If this trend persists, USDJPY could stabilize around 140 rather than continue its sharp ascent.
=> This emerging JPY trend could weaken the DXY. As a result, assets like gold, which is priced in U.S. dollars, may rise due to its inverse relationship with the dollar.
2. Euro and EURUSD
The euro area interest rate has followed the same downward trend as the U.S., dropping from 4.5% to 2.7%. The streak of decreasing interest rates remains active, with a long-term target of about 2%.
Generally, interest rates in the euro area remain lower than in the U.S. due to differences in economic growth policies. Europe exercises greater caution in controlling inflation, while the U.S. consistently experiences a higher inflation rate. This interest rate gap weakens the euro against the U.S. dollar.
However, based on short-term technical analysis, we believe EURUSD will rise to its recent high of around 1.12 before falling back to its previous low of 1.02.
=> The current interest rate trend will weaken EURUSD relative to the U.S. dollar over the long term. Yet, the short-term strength of the euro could temporarily weaken the U.S. dollar, causing assets like gold to rise.
3. USA and DXY
The U.S. is on a streak of lowering its interest rates, with a long-term target of about 2.9% while aiming to keep the inflation rate around 2%.
Despite the pace of rate cuts, the U.S. dollar is generally trending downward in value compared to other currencies in the DXY basket, including the JPY and EUR, the two largest components of the index.
During Trump’s election term, he favors stabilizing the DXY, keeping the U.S. dollar relatively weak. Additionally, trade wars could allow other currencies to gain dominance over the U.S. dollar, eroding the strength it held during Biden’s term.
=> In the long run, we’re unlikely to see the U.S. dollar’s unchallenged dominance or a bullish DXY again. This creates an opportunity for other assets, such as gold and Bitcoin, to rise over the long term.
ii. Opportunities for gold trading (XAUUSD)
1. Technical analysis
XAUUSD Outlook: We recommend that traders and investors seek buy opportunities, with a take-profit (TP) target around 3,090 USD/ounce.
4-Hour Timeframe Analysis:
We’ve observed the first breakout below the ATR band on the Trend Identification Indicator, suggesting the potential onset of a minor bearish trend. However, we view this as a strong correction rather than a reversal, likely setting the stage for a significant upward move ahead.
Buy Zone:
The ideal entry range is between 2,949 and 2,975 USD/ounce. This price area aligns with the “golden zone” of the Fibonacci retracement, offering a high-probability support level.
Quantum Indicator Insights:
The indicator has shown its first crossunder line following a robust bullish phase last week. This signals the end of the recent upward wave, reinforcing the need for a strong corrective pullback.
Key Confirmation:
We advise waiting for a bottom confirmation from the Quantum Indicator before entering trades. A reliable trading signal hinges on solid confirmation from algorithmic indicators, which we consider essential for precision.
This is our previous XAUUSD trading plan in the last week. The result is quite impressive. You can check out this link for verification: [HERE]. Additionally, last year, we posted gold spot analysis and predicted that the gold price would rise sharply. You can check out this blog for verification: [HERE].
=> For Gold trading plan this week, we recommend you to look for BUY position for this week. Every pullback is an opportunity to BUY and take Profit. You should not waste it or let fear consume you.
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We have our fan page on Facebook for Forex CFDs trading signals and analysis for every week, you can check this out: [HERE]
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