Weekly Technical Analysis Report 21 June – USDSGD played out nicely, Gold could see a bounce this week
Weekly Technical Analysis Report 21 June – USDSGD played out nicely, Gold could see a bounce this week
1. Last week’s call on USDSGD:
Before:
Note: Coloured candles represent our projection
Outlook on USDSGD: Bullish breakout to be seen
With the Fed’s monetary policy meeting around the corner, USDSGD has been trading sideways, as prices held within the support and resistance areas at 1.32208 and 1.33100 respectively. The support area at 1.32208 lines up with the weekly support level, ascending trend line and 78.6% Fibonacci retracement and a test of this area could see a bounce from here. That said, we do caution the limited upside in prices, noting the 1.33100 resistance area, in line with the descending trend line and 61.8% Fibonacci retracement. A break above this resistance zone could see prices push much higher. Keeping in mind that the views on the weekly time frame echo a more bullish bias as prices broke its previous resistance zone, the pullback in prices on the daily time frame could present an opportunity to play the bounce.
After:
Note: Coloured candles represent our projection
2. This week’s outlook on Gold:
Outlook on XAUUSD: Bullish play seen
Last week, Gold prices dipped as Dollar rallied, following the Fed’s monetary policy meeting which signalled that they could be tapering bond purchases ahead of their previous plan, amid rising inflation and progress in the labour market. They also released forecasts of two anticipated interest rates hikes by the end of 2023 and upgraded estimates for inflation for the next three years.
Right now, looking at the XAUUSD chart, prices are currently testing a key weekly and daily support area at 1763.14, which lines up with the 61.8% Fibonacci retracement. We could see a bounce from this support zone with 1820.20 as our daily resistance target, in line with the 38.2% Fibonacci retracement. Keeping in mind that the views on the weekly time frame echo a more bullish bias as prices hold well above its trend line, a break above our daily resistance zone at 1820.20 could see more upside in Gold prices.
Outlook for Gold: Bullish play seen by Salzworth on TradingView.com
