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By: Ahura Chalki
China’s Xi and positive trade headline!
As I mentioned the day before in the daily analysis, it is not all about the virus, Economic negative data, especially from EU and Japan also added the fear of recession. What is scarier here is that published data, covers the economic situation, right before starting these tensions about COVID-19 and now from next week, the data which will be published will cover the economic sentiment, affected by current concerns.
At the first reaction, China’s Xi signaled positively, especially after new economic stimuli, however, will that be enough of not, this is what we have to find later. Reuter’s quotes from President Xi reported that China announced tariff cut on the 696 US goods, while Xi also mentioned that “China can meet its economic growth target in 2020 despite the impact of the coronavirus outbreak”
Market feedback in the Asian season to these headlines was positive. Today in the earlier Asian market, Nikkei in the reaction to this news, as well as earlier published positive trade balance, rose by 1%, while Hang Seng and Shanghai also respectively gained 44% and 32%.
CPI and Housing data from the UK, Us and Canada will be in focus for today’s trades.
Gold technical Analysis:
Gold could breathe all its yesterday’s resistance, trading now above $1600, however, to reach September high at $1612, it needs to pass the $1604 at first. On the flip side, $1594 is a key level, which closing under this level, will send the yellow metal price deeper again to $1570 area. Technical indicators remain of more bullish.
Pivot point: 1597.50
Resistance levels: 1612.52 / 1620.60
Support levels: 1589.82 / 1574.80
Today, the expected trading range is between 1589.82 support and 1612.52 resistance.
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