By: Ahura Chalki
Powell, USD, Gold!
Good, but worrying! This is what we can see from the US economic data, published past weeks, or about the past 2 months, even! Especially employment data, CPI and Factory orders! Many investors fear comes from similarity, between this situation and past financial crisis which we had. All these news and data brought the idea of the rate cut to help the industries to grow better. Today at 15:45 GMT, Federal Reserve Chair Jerome Powell is to speak. As head of the Fed, which controls short term interest rates, his words have more influence over the USD value than any other person. For today’s trade, it’s better to wait for his speech, before opening any new positions.
From the technical side, as price mostly moves between the middle line and lower band of Bollinger Bands, this indicator remains of bearish movement for now in H1 chart, same as RSI, where price line is under 50-level. Stochastic’ s lines also in a downtrend, getting close to 80-level, over bough area as a sign of another down move from this level. Gold is trading now under 1396 USD.
Pivot point: 1397.45
Resistance levels: 1403.26 / 1413.45
Support levels: 1387.26 / 1381.45
The expected trading range for today is between 1381.45 support and 1413.45 resistance.
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