4 Reasons Why Gold XAUUSD has Fallen. Forex Trading AUD Opportunities Post-Interest Rate.

In today’s GCI Market Outlook, let’s take a look at Forex Trading on GBPUSD, Silver, XAGUSD, Gold, XAUUSD, EURAUD and AUDNZD.

Just a reminder that these videos are intended as educational, we are only observing current market conditions, and these are not to be considered as trading advice.

The Reserve Bank of Australia just voted to keep interest rates at the current level, and this strengthened AUD.

We have been following the range trading opportunities on AUDNZD, and the news drove price action to resistance, and it is now retreating with technicals looking bearish.

If we move out to the 4-hour chart, we see the larger picture on this range with support at around $1.153.

If we look at AUD pairs as a group, we see the same price action volatility, but be careful when you see price action moving with the trend, as the retracements may not work.

We may, however, find opportunities to trade with the trend later, if price action pulls back and reverses direction, in EURAUD, for example.

I encourage you to look at all the AUD charts throughout the day.

We have seen record highs on Gold at almost $5,600, then a loss of $1,200 per ounce yesterday.

One reason is simply profit-taking…investors and traders are cashing in on their open positions.

Another reason is the strength of USD, which is the quote currency of XAUUSD.

A third reason is the surprise pick of Kevin Warsh as the next Fed chair.

Warsh is known to be hawkish, which may delay the Fed's interest rate reductions, combined with higher-than-ideal inflation.

Fourthly, in some markets, margin requirements for futures contracts were increased, which forced some traders to liquidate positions.

Also, from the technical point of view, we see this rising wedge, which is a reliable bearish pattern with support at $4,400

We see the same price action with silver, with $75 as the next key level below.

Most USD pairs are showing the same price action as XAUUSD, like GBPUSD.

We also see some bearish activity, but we will wait for a bounce off this upper trend line.

Last time we looked at setting up Simple Moving Averages on cTrader.

Let’s take that one step further and look at 2 SMA’s and how traders use Moving Average Crosses.

Set up one SMA, which we will call the fast SMA, and set a period of 10.

Now, set up the slow SMA with a period 4 times faster, of 40 candles, and a different colour.

Here you can see where the SMAs cross, indicating moves to the downside and upside as we backtest.

You may experiment with different periods and timeframes, but always backtest before incorporating any indicator in a trading system.

That’s all for now.

CFDs and FX are leveraged products, and your capital may be at risk.