Trading on Thursday was closed in the green zone, due to the moderate weakening of the dollar. But, already today, the bears managed to win back all the losses, amid some reduction in tensions between the US and Mexico and the strengthening of the US currency.
On Thursday, the delegations of Mexico and Washington held quite fruitful negotiations to resolve the migration conflict. The Mexican side voiced a number of measures that they are ready to take to reduce the flow of migrants in the United States. But, there are a number of unresolved issues that the parties will discuss during further negotiations. In particular, the United States is demanding that Mexico place on its territory migrants who are waiting for asylum decisions in the United States. Despite significant progress in negotiations, the United States has not yet canceled its decision to impose duties on Mexican goods from June 10.
In general, stock exchanges positively assessed the results of the negotiations and yesterday US indices finished trading in the green zone, putting additional pressure on the yellow metal.
The main driver of financial markets today will be the US dollar and statistics on the labor market from the United States. The data may change investors' expectations regarding future monetary policy adjustments. The data on employment in the non-agricultural sector (after very weak data from ADP, it is likely that the actual figure for May will be significantly lower than the forecast of 185 thousand) and the dynamics of average wages will be of the greatest interest.
On the chart, we see that the bulls could not continue moving upwards and after an unsuccessful attempt to reach the 1343.00 mark, the price turned down. Therefore, now there is a greater likelihood of developing a deeper kickback movement with targets in the area of 1322.00-1325.00.
Resistance Levels: 1343.00, 1350.00, 1355.00;
Support levels: 1325.00, 1318.00, 1310.00.
The main scenario is a correction to the area of 1322.00-1325.00.
Alternative scenario - growth to 1343.00
There are fewer drivers on the market for the further development of upward movement in gold. Therefore, today we are waiting for the development of the correctional movement. the intra-day we would recommend sales from the level of 1338.00. Before the publication of Non-Farm Payrolls all positions should be closed.
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 […]
Only from November 02nd to December 04th, 2020, 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 200%? […]