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Gold analysis – 26 March 2020
By: Ahura Chalki
Earlier today, as it was expected, the US Senate voted for the largest stimulus in the history of the global economy. The stimulus package, supposed to solve the current cash problem, reduce the fear of businesses (mostly small and middle-companies) from bankrupting and tax worries, as well as Airlines’ concerns. All the reasons which helped the Gold to raise in past days and it is wildly expecting to push the Gold price lower.
However, what we have to look carefully at is that the markets had already their reaction to this law in their yesterday moves, so we have to wait for the US market to see if it can still move the markets or was not good enough to end the crises. At the time of writing, Nikkei lost more than 5%, while it was rising for three days in a row for more than 6%. The US futures also trading in red, about 1% lower, for all main indexes.
Gold technical analysis:
In the H1 chart, the market volume is still close to zero, signaling of a lower price at the moment, while the price line also now moves under the main EMA’s. 200 HMA at $1562 is still key support which trading above this level, still motivate the bulls and breaching this level down, can change the market direction.
Pivot point: 1617.15
Resistance levels: 1637.06 / 1659.06
Support levels: 1595.15 / 1575.23
Today, the expected trading range is between 1575.23 support and 1637.06 resistance.
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