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Gold analysis – 5 May 2020
By: Ahura Chalki
Gold lost almost 0.25% at the beginning of the Asian season, despite unlocking progress in many countries in the EU and Asia, including more States in the US, however, it still holds the $1700 level, trading above that. For now, since the US and Chinese tensions growing more, investors have more doubt on the future progress of economic developments, while stock markets still could not gain back the trusts.
For today, a busy economic calendar, especially Trade balance, and ISM Non-Manufacturing PMI from the US and PMI data from the US will be in the spotlight. Since the expectations are negative, depends on how deep they will be, can support the bulls more, while positive data, will slow down the rally at the moment and can push the price deeper.
Gold technical overview – H1 Chart
Doji candle formed in higher levels of the day before, signaling the bearish since its lowest level has been broken earlier today. At the same time, Parabolic SAR, forms its dots above the candles, supporting the bears, while RSI at 52 moving flat.
Pivot point: 1701.64
Resistance levels: 1711.67 / 1722.65
Support levels: 1690.66 / 1680.63
Today, the expected trading range is between 1680.63 support and 1711.67 resistance.
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