XAUUSD: Strategies for dealing with the long-short tug-of-warGold market fundamentals: OANDA:XAUUSD
The weak employment report prompted the market to expect a rate cut of nearly 105 basis points by the end of the year, with a 100% chance of a rate cut in September. This expectation has given gold some support, as rate cuts usually reduce the opportunity cost of holding gold.
However, with the rise of the US dollar index and the rebound of the 10-year Treasury yield, gold's rebound has also been suppressed.
The above two points are the current shock factors that have led gold to enter the competition between long and short forces.
Gold market technical aspects:
From the Fibonacci retracement indicator of Monday's plunge, the current price has come to a dense pressure zone, 0.5 is 2411, 0.618 is 2422, and the high point of the oscillation range 2415 is also between the two, so it is not easy to break through here. If it breaks, there is a broad sky above, and if it does not break, it is likely to continue to maintain the oscillation pattern.
Trading strategy:
Although it is a tug-of-war between long and short positions, I prefer a decline that cannot break through, so I will choose to sell at a high level
Support range: 2380-2364
Resistance range: 2411-2422
Intraday risk data: US initial jobless claims, US June wholesale sales monthly rate
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