XAUUSD
XAUUSD have experienced a positive trend for the sixth consecutive day, reaching over a one-week high above the $2,030 level during the early European session. The momentum can be attributed to the weakening US Dollar (USD), which hit a fresh three-week low.
The ongoing positive move is further supported by hawkish Federal Open Market Committee (FOMC) minutes, contributing to elevated US bond yields, although gains might be capped.
Technical Analysis:
Current Price: $2,030
Trend: Bullish
Support Level: $2,030 (Immediate), $2,000 (Strong)
Resistance Level: $2,050 (Immediate), $2,080 (Strong)
Position:
Considering the bullish trend, traders may look for potential long positions, with $2,030 serving as a key support level. However, caution is advised due to the possible impact of elevated US bond yields.
AUDUSD
The Australian Dollar (AUD) has extended its winning streak, initiated on February 14, propelled by positive preliminary Australian Purchasing Managers Index (PMI) data.
The data reflects a noteworthy return to growth in private sector activity in February, ending a five-month downturn, primarily due to robust expansion in the services sector. AUD/USD currently trades around the major level at 0.6560, positioned above the immediate support level of 0.6550.
Technical Analysis:
Current Price: 0.6560
Trend: Bullish
Support Level: 0.6550 (Immediate), 0.6500 (Strong)
Resistance Level: 0.6600 (Immediate), 0.6650 (Strong)
Position:
With a bullish trend supported by strong economic data, traders may consider long positions, looking for entry points near the immediate support level of 0.6550. However, monitoring overall market sentiment is crucial for risk management.
WTI
Oil prices have seen a second consecutive day of gains on Thursday. Expectations of improved demand in the U.S., the world's largest oil consumer, contribute to this positive trend. Refineries attempting to return to service after outages and a weakening dollar further support the rise in oil prices.
Brent crude futures rose 0.2% to $83.20 a barrel, while U.S. West Texas Intermediate crude futures for April climbed 0.2% to $78.10 a barrel.
Technical Analysis:
Current Price (WTI): $78.10
Trend: Bullish
Support Level: $77.50 (Immediate), $76.00 (Strong)
Resistance Level: $79.00 (Immediate), $80.00 (Strong)
Position:
Given the bullish momentum, traders may consider long positions, targeting entry points near the immediate support level of $77.50. Monitoring developments in U.S. refineries and the dollar's movement will be crucial for informed decision-making.
Conclusion
In conclusion, the current market analysis suggests a bullish trend in gold, the Australian Dollar, and oil. Traders are advised to exercise caution, considering potential factors such as the impact of elevated US bond yields on gold and overall market sentiment on the Australian Dollar. Additionally, monitoring developments in U.S. refineries and the strength of the dollar is crucial for oil traders.
Disclaimer
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Paraphrasing text from FXStreet, and Yahoo Finance all rights reserved by the original author.
