XAUUSD and EURUSD Reach Our Targets: What’s Next?
Trump hiked tariffs against China to absurd levels of 145%, adding that the US might delist publicly traded Chinese companies from US stock exchanges.
Amidst the chaos that has completely overrun the markets these last few days, with monstrous volatility spikes dominating the financial landscape in every asset class, some of our major targets have been reached.
Despite tariffs being postponed by 90 days for the whole world except China, XAUUSD skyrocketed to a new all-time high, reaching our major target of $3200/oz. Congratulations to those who entered the market during this short-lived correction! Now, if tensions continue to increase, despite the metal being overbought again, a further rise is very likely. The Fibonacci Golden Zone strategy hints at a possible target of $3342/oz.
Many factors contributed to the rally, the first of which was the unpredictability of the US President’s policy decisions. The two biggest economies are at each other’s throats, escalating a trade war that will likely plunge the world into chaos. At the same time, Trump's inconsistent use of threats and tariffs is creating an anti-business environment, as businesses like stability and predictability of economic conditions.
That’s why the Euro surged to fresh yearly highs, completing our 2025 forecast for reasons different from those we considered when making the first scenario. Investors are rushing out of American debt securities, with the S&P US Treasury Bond Index down 2% since April 4, and bringing their money to the second-largest financial market—the European one.
By doing so, they are selling USD-denominated securities and buying EUR-denominated ones, boosting the demand (and the performance) of the European currency.
EURUSD reached or 1.12150 target, and is trading at 1.13500 by April 11, 10:35 MT Time. The next major target stands at 1.14975, through a possible retest of the old target zone at first.
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