Contents
Market Recap
Trading gold through platforms like Exness offers traders access to precise execution and tight spreads, making it an optimal choice for capitalizing on XAU/USD volatility. Gold prices recently tested $3,500 resistance but faced profit-taking pressure, retreating to critical support levels as risk appetite returned to broader markets.Current Price Action and Trends
Price Level
XAU/USD is consolidating near $3,400 after rejecting $3,440, with technical indicators suggesting that bullish momentum remains intact as long as prices hold above crucial support.Trend
The medium-term trend remains upward despite recent corrective pressure, driven by safe-haven demand and Federal Reserve policy expectations.Key Levels
- Immediate support at $3,400 (June 5 high)
- Breakout resistance at $3,440 (ascending wedge top)
- Long-term target at $3,500 all-time high
Support
- $3,400 (primary): Failure here would target $3,350 (wedge bottom) and $3,340 (June 11 low)
- $3,300: 50-day EMA and psychological support level
Resistance
- $3,440: Confluence of horizontal resistance and ascending wedge boundary
- $3,500: All-time high acting as major target
Long-Term Target
$3,660 (projected high for June 2025 based on technical patterns).Trading Strategy for XAU/USD
Entry Points
- Pullback Entry: Buy on retest of $3,400 support with bullish candlestick pattern confirmation.
- Breakout Entry: Buy above $3,440 resistance with increased volume, targeting $3,500.
Risk Management
- Stop Loss (SL): 1% below entry price or placed below $3,340.
- Take Profit (TP):
- First TP: $3,440 ($100-200 pips from $3,400 entry).
- Second TP: $3,500 (final breakout target).
Key Indicators to Monitor
- RSI: 60-70 zone indicating bullish momentum without extreme overbought conditions.
- Moving Averages: 50-day EMA ($3,300) and 200-day SMA ($3,000) require price to hold above for trend validity.
Rationale for Strategy
Bullish Drivers:- Continuing Middle East tensions (limited escalation maintaining safe-haven demand).
- Federal Reserve policy uncertainty ahead of the June 17 meeting.
- Technical bullish wedge pattern.
Volatility:
- Anticipate increased price action during US trading hours (14:00-21:00 UTC).
- Monitor Fed rate decision language and post-meeting statements.
Final Advice
- Execute Pullback Orders on first sustained close above $3,400 with RSI > 50.
- Set Tight Stops at $3,340 to protect capital during consolidation.
- Scale In below $3,410 if the market consolidates below $3,440 resistance.
- Monitor News Flow for Middle East developments and Fed commentary.
- Exit Majority Positions at $3,500 target, leaving 20% for possible new highs.
Trade confidently with Exness, leveraging tight spreads and reliable execution during high volatility periods.
