Main Scenario: As long as XAUUSD stays above 1964 the main trend will be upward. Once 1972 resistance level is breached on hourly basis, then the precious metal will again try to test 1976
Target Expectation: 1976
Considerations Supporting The Scenario: Federal Reserve unveiled a new framework that could keep interest rates lower for a longer period of time.In a speech, Fed Chairman Jerome Powell said the central bank formally agreed to a policy of “average inflation targeting” In other words, the central bank will let inflation run “moderately” above its 2% goal for “some time.” This speech weakenen the Dolar against major currencies. As Dolar weakens, precious metal gets support from weaker Dolar.
Alternative Scenario: An alternative expectation may be taken into account in case of a close below 1964 price level
Alternative Target Expectation: 1958- 1953