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Gold analysis – 7 May 2020
By: Ahura Chalki
Gold gaining in the Asian season, after weak US economic data, followed by weaker than expected Chinese service PMI, earlier today.
Yesterday, US ADP Nonfarm Employment Change confirmed 20,236K more unemployed Americans in April. Before that EU retail sales also added the fears in the market, which caused red signs in all active stock markets, Asian, European and American.
April and May data must confirm that the latest bonces in stock markets, they were real and we have to be an optimist or it was just “Dead Cat Bounce”.
For today, the market supposed to be cautious and fluctuating. Eyes will be on BoE monetary policy meeting, while Laggard speech also will be matter, in the EU season and North American season, all eyes will be on Initial Jobless Claims numbers. As it was falling in the past two weeks, if it continues, the market will have more hopes in faster reopening, while on the flip side, new jump in jobless numbers, can be the fuel for more bulls in the Gold market.
Gold technical overview – H1 Chart
Technical indicators have mixed signals. While Parabolic SAR dots still under the Candles, supporting the bears, price moves clearly with a downtrend interest in the chart, but the OBV trend line cannot confirm that, yet. Breaching under $1484 can confirm the short term downside, however. RSI at 40, started supporting the bears as well.
Pivot point: 1690.00
Resistance levels: 1698.00 / 1716.00
Support levels: 1671.80 / 1663.80
Today, the expected trading range is between 1671.80 support and 1716.00 resistance.
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