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By: Ahura Chalki
Pull back from 7 years high after peace signals!
Gold movement in last days directly affected by US-Iran tensions and high possibility of war, especially after yesterday’s Iranian missile attack on American force bases. However, after last night President Trump’s comment in his press conference to update the US position after all, which he mentioned No Americans were harmed and Iran appears to be standing down.
For now, by cooling off war tensions, now eyes will return to economic data, especially NFP and pre NFP data. The day started with missing data from china. Chinese CPI and PPI at 4.5% and -0.5%, respectively, were less than expected. In the rest of the day, the employment data from the EU and the US as well as Mr. William’s speech, FOMC member speech will be in focus.
Gold Technical Analysis:
H1 chart confirms that gold staying and trading at a very important level at the moment, $1557. Staying and trading above this level, can send the yellow metal more forward toward the March 2013 top at $1620 and up while easing under this level will signal more bearish to $1552, $1548 and $1534. In the H1 chart, technical indicators returned to the negative area. EMA crossing strategy supporting the bears, by crossing the EMA50 with EMA20 to the downside, RSI moves at 37 and Stochastic has correction signal.
Pivot point: 1569.05
Resistance level: 1586.30 / 1628.98
Support level: 1562.90 /1526.35 / 1509.10
Today, the expected trading range is between 1562.90 support and 1586.30 resistance.
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