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By: Ahura Chalki
All eyes on China’s coronavirus!
Gold started a week with a positive mode, as China’s coronavirus add risk appetite in the market! Gold ended last week also with the upbeat move, despite the very positive NFP data. For the week ahead, coronavirus headlines can lead the market movement. Risk appetite raises as death numbers crossed the 900, while numbers of infected rallied beyond 40K (BBC). Even though the percentage of deaths from patients is much lower than the SARS, but the speed of spreading of the virus is way faster.
This week we do have the Fed’s semi-annual report as well, on Tuesday and Wednesday, however, until that and for short term, any update from the Coronavirus and related news can move the market.
Gold technical analysis:
Gold moves at its 50% of Fibo level (From downtrend of Feb.3 at 1593), Key support and resistance, sit at $1558 and $1576 (23.6% & 61% of Fibo). In the H4 chart, RSI and Parabolic SAR, supporting the bulls, while Stochastic has the correction signal and EMA crossing strategy supports the bears.
Pivot point: 1568.65
Resistance levels: 1577.11 / 1582.46
Support levels: 1563.30 / 1554.84
Today, the expected trading range is between 1563.30 support and 1582.46 resistance.
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