Gold Price Analysis: XAU/USD prepares for a technical breakout eyeing $1800

Gold bounces off the ascending channel’s lower boundary support as a bullish impulse emerges.
The MACD reinforces XAU/USD’s uptrend on the daily chart.
The bearish leg may continue toward $1,650 if the channel’s middle boundary support fails to hold.

John Isige FXStreet

Gold has continued to drop from January highs around $1,950 amid a stronger US dollar. The precious metal has sustained price action in a descending parallel channel, as observed on the daily chart. This shows that sellers have been relatively aggressive.

The channel’s lower boundary played a key role in stopping the losses from reaching $1,650 earlier this week. A rebound from this support allowed bulls to reclaim the ground at $1,700 and closed the trading at $1,723.

If support at the channel’s middle boundary holds, XAU/USD will shift the focus upward toward the crucial resistance at $1,800. Moreover, trading above the channel may trigger massive buy orders as the risk appetite increases.

XAU/USD 4-hour chart

The imminent uptrend has been reinforced by the Moving Average Convergence Divergence (MACD). This indicator tracks the momentum of the asset and measures its momentum. Traders can also use the MACD as a strategy to sell the top and by the bottom.

Note that as the MACD line (blue) crosses above the signal line, it is advisable to buy or increase your position. Moreover, the indicator is deep under the mean line, which means rising into the positive region would be a bullish signal.

It is worth mentioning that the uptrend will fail to materialize if gold fails to hold at the channel’s middle boundary. Declines toward $1,650 will come into the picture, extending the bearish impulse in the coming week.

Author

John Isige

FXStreet

John Isige is a seasoned cryptocurrency journalist and markets analyst committed to delivering high-quality, actionable insights tailored to traders, investors, and crypto enthusiasts. He enjoys deep dives into emerging Web3 tren

Japanese Yen gains ground as traders await Fed rate decision

The USD/JPY pair loses ground to near 160.25 during the early European trading hours. Traders prefer to wait on the sidelines ahead of the US Federal Reserve interest rate decision under new Chair Kevin Warsh later on Wednesday.

AUD/USD stays pressured; holds above 0.7050 as traders await Fed decision

The AUD/USD pair struggles to capitalize on the previous day's hawkish Reserve Bank of Australia-inspired bounce and trades with a negative bias for the second consecutive day on Wednesday. Spot prices, however, hold above the 0.7050 level as traders opt to wait for the outcome of a two-day FOMC policy meeting before placing fresh directional bets.

Gold remains depressed but holds above $4,300 as traders seem hesitant ahead of Fed

Gold remains on the back foot heading into the European session, though it lacks follow-through selling and holds comfortably above the $4,300 mark. Traders now seem hesitant ahead of the highly anticipated FOMC policy decision, keeping the commodity below the weekly high.

DOGE near breakout, SHIB at its ceiling and PEPE leads meme coin recovery

Meme coins are approaching a key technical level, which could determine the next directional bias. Dogecoin struggles to overcome a major resistance level, and Shiba Inu recovery lost momentum near a crucial barrier. Meanwhile, Pepe extends its rally for a sixth straight day, raising the prospects of further upside if momentum persists.

The most important event will be the Fed meeting with Mr. Warsh now in charge

The most important event will be the Fed meeting on Wednesday, with Mr. Warsh now in charge. As more than one analyst points out, the case for holding rates the same is strengthened by the Iran deal and the prospect of the Strait re-opening, although nobody thinks Warsh can marshal enough doves to do a cut this time.

Why a hawkish RBA is no longer enough to lift the Australian Dollar

The Reserve Bank of Australia delivered more than what markets expected: a hawkish hold that should have supported the Aussie. But markets widely ignored it, focusing instead on slowing economic growth and proving that central bank messaging alone isn’t always enough to drive currencies.