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By: Ahura Chalki
Side move ahead of the busy calendar!
Uncertain results of the trade deal added doubts in the market, while still, both sides are negotiating about their concerns. Most disagreement is about the suspension of tariffs and China’s import of US farm products. On the other hand, Powell still believes that even if there are some concerns about economic recession, however, risks are not coming from the internal economic elements, mostly it is the reason of the US-China and US-EU trade tensions and the way of solving that, is to finish this war, instead keeping it long and not cut the rate or go for more dovish policies, more than what we have. So fare from today’s busy calendar, the Japanese third-quarter GDP has been published and disappointed market by 0.10%. The expectation was 0.2%, comparing the previous quarter which was 0.4%, and the realized number was just 0.10%. Australian Employment change also was less than expected, while the unemployment rate was steady at 5.3%, the same as China’s unemployment which met the expectation at 5.1%, while the Industrial production index was negative. For the rest of the day, GDP in the Germany and EU zone and later the US CPI, PPI, Initial jobless and Powell second day of testimony will be in the spotlight for Gold traders.
Technical indicators have very mixed signals and cannot identify any exact direction out of them, while market volume also clearly decreasing. $1458 and $1469 are the key support and resistance levels, which breaching any of them and trading stable under or over them will make the market direction more clear.
Pivot point: 1462.39
Resistance levels: 1468.88 / 1473.60
Support levels: 1457.68 / 1451.20
Today the expected trading range is between 1451.20 support and 1473.60 resistance.
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