End of the rally?
By: Ahura Chalki
Why pullback? The first question that can come into the minds by checking the chart in the new trading week. Last week generally market and especially Gold had a very volatility week, rose up when most traders waiting for bearish or vice-versa. The price more than to show the value of this metal was the vitrine of fear of the market of economic growth, of messing the markets. The week started with yesterday’s statement draft of G-20 meeting, where Trump and President Xi Jinping are due to meet, with the hope of statement draft and getting some positive points in the coming meeting. Also “Trump defends Mexico migration deal “(Reuter’s politic) and before that also we had the news about delay in Mexico tariffs. In the same time, last week ended with negative news of the United States, NFP with 110K less than expectation and Average Hourly Earnings 0.10% less than market forecast, however, the Unemployment rate still remains in same number of 3.6% which shows despite all these negative news, still labor market doing well and recruitments continuing and it is the positive sign for the largest economy of the world.
Putting all these news and data together, somehow confirms that Gold price was rose up early before that economic data and did not have that much place to keep it more, at least for now and with simple positive data, it is on its way back to deep.
From the technical side, $1335 and $1321 are key levels for now to realize the next movements. Technical indicators in harmony together, have signs of bearish, where Candles are forming totally under SMA in one hand and in another hand MACD histograms under o-line, while Stochastic also confirms that, even if it’s moving under oversold area, but have to remember, we are in downtrend in H1 chart, so it cannot be confirmation of reversal, unless if other indicators also can confirm that, which we cannot see it for now.
Pivot point: 1339.90
Resistance level: 1349.61 / 1357.81
Support level: 1331.64 / 1321.94
The expected trading range for today is between 1321.94 support and 1349.61 resistance.
The analyses here are just an Idea and no investment consulting. Invest in the Financial market has a high level of risk. In case if you are looking for a personal investment read this PAGE