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By: Ahura Chalki
US and China step back from earlier warnings.
After a stormy Friday, where China and the United States, both rose the tariffs against each other’s goods, there are sort of signs of stepping back from earlier warning before the G7 meeting in Biarritz. Gold price is pulling back from a multi-year high at $1555right after opening the market at the beginning of the new trading week, overnight. US dollar index is trading now above Friday’s close. The week ended for DX at $97.49, while the trade started at $97.30 at the beginning of the trading week and now it is trading above $97.50.
Besides them, all major US futures and indices (USA500, US100, and USA30) started the week with down gap and now they are on their way to cover the gaps. Following Trump’s order to US companies about leaving the Chinese market (The New York Times), Mnuchin, Kudlow downplay Trump ‘order’ to US companies to leave China (The Straits Times). Treasury Secretary Steven Mnuchin commented, “I think what he was saying is that he is ordering companies to start looking,” On the sidelines of the G7 Summit. (The Japan Times). On the other hand, China’s Vice Premier Liu He also showed readiness, via Reuters, to resolve the trade dispute with the US via calm negotiations. Now we have to wait and see the market reaction to this news and comments after all, while everything is about increasing tensions in the market.
$1535, $1525 and $1516, $1507 and $1492 are Key support levels while $1571 and $1596 are next key resistance levels, where crossing any of them, can lead us to the next step. On the other hand, DX also could cross again its 38.2% Fibo earlier today and if it can repeat that with trading and holding above this level, can help Gold to move downside a bit and to wait for more news, economic data and market reaction to this nonsense trade war. In the H1 chart, Gold trading above EMA200. While RSI moves nearby 80-level as overbought area, MACD in keeping with Monetume, both remain the sign of the end of a bullish trend for now.
Pivot point: 1518.82
Resistance levels: 1544.34 / 1555.87
Support levels: 1507.30 / 1481.79
The expected trading range for today is between 1507.30 support and 1555.87 resistance.
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