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By: Ahura Chalki
Bears time or bulls still there?
Gold raised sharply yesterday, as fears of coronavirus rose as well as negative economic data, with a falling USD helped. After reaching the 3 days high at $1586, gold tested again yesterday’s low at $1573, downtrend after the WHO (World Health Organization) declared the situation as a Global Health Emergency. Stock markets in the Asian season rose in early trades. The market seems priced so much on one sentence in the WHO statement, where it mentions that China is doing well on controlling the virus and they are more worried about other countries than China. This pricing on one sentence, hoping the market will be returned back on its feet faster, seems to happen so earlier than many were thinking, same as me. Today economic calendar has a very busy day, waiting to realize economic data from all developed countries, almost.
For now, still, updates from this little virus will lead the whole Gold market, while we have to be updated with the economic calendar, as well, with the GDP of EU and Canada and many consumer related data from the EU and the US.
Gold technical analysis:
Technical indicators have mixed signals in both H1 and H4 charts, cannot confirm bulls or bears in any of them. In the H1 chart, Stochastic supports the bulls, with returning to the positive side from oversold area, while RSI still under 50 and Parabolic SAR also forming its dots way above Candles. However, EMA crossing strategy also supporting the bulls.
Pivot point: 1576.63
Resistance levels: 1581.00 / 1590.34
Support levels: 1567.29 / 1562.93
Today, the expected trading range is between 1562.93 support and 1590.34 resistance.
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