On the first day of the new trading week, gold was expectedly trading in a limited range, keeping the lateral direction of movement. In the United States, it was a day off, so many large players were not on the market that could influence the dynamics of trading. There were no Important economic and geopolitical news.
In Europe, the focus was on the outcome of the elections to the European Parliament. Investors positively assessed the fact that the majority in parliament were kept by pro-European forces, while the anti-European and populist parties gained significantly fewer votes than expected.
Today, gold is still traded with a decline, amid the recovery of major stock indexes and the strengthening of the dollar index, which has risen in price from the beginning of the day by 0.2%. After a series of weak economic reports for the US currency, data on the CB consumer confidence index will be important today. Experts predict a growth rate from 129.2 to 130.1 points, respectively, weaker data may have significant pressure on the US currency.
In matters of geopolitics, the central theme remains the situation in world trade. On the eve Trump noted the successful trade negotiations with Japan and hinted at the possibility of another increase in duties on Chinese imports. Fees "can be raised very substantially and very simply," Trump said.
On the chart we see the price is declining, after an unsuccessful attempt to get to the resistance at 1289.00. Accordingly, from the current levels we can expect the continuation of the local downward trend towards the level of 1279.50. In the perspective of the next 2-3 days, the priority remains with the development of the range trading between the levels of 1279.50-1289.00.
Resistance Levels: 1289.00, 1300.00, 1310.00;
Support levels: 1279.50, 1270.00, 1265.00.
The main scenario - decline to 1279.50 and rebound upwards.
Alternative scenario - consolidation below 1279.50 and decrease to 1273.00
Today, the market is dominated by a moderately negative news background, which contributes to the development of the downward movement. But, we consider that possible entry points in the middle of the 1279.50-1289.00 range are quite dangerous. Therefore, we recommend to enter the market from the borders of the marked horizontal channel.
Only from November 02nd, 2020, to January 04th, 2021, Deposit Bonus 200% is available for all FortFS clients! Use the advantage to engage for the unique offer within a limited period: activate the deposit bonus and get up to 200% on the deposit amount on your trading account! How to get a Deposit Bonus of […]
Only from 23 to 25 of November, the largest no deposit bonus 100 USD is available for all Forex traders! 🏆 Bonus details: 100 USD maximum withdrawal 75 lots of required trading turnover 2 weeks to try all of the trading conditions Available for cent accounts 📍 How to get the bonus: 1) Register an […]