Forex Marketz Daily Forex News – Fully Markets Update
Looking at the popular spot gold futures contract, the yellow metal is in full on consolidation mode as there is a fairly quiet economic calendar on Wednesday. There are some headlines surrounding geopolitical events and the coronavirus, but not enough to influence price action yet.
As mentioned above, there is a fairly quiet economic calendar on Wednesday. The headline event will come out of Canada. Their central bank, the Bank of Canada, will announce their monthly monetary policy and interest rate decision as well a monetary policy statement. The world’s largest economy, the United States will publish weekly JOLTS employment openings.
As far as the European Union is concerned, they have no key macroeconomic data releases on today’s docket. The United Kingdom also has a quiet calendar today. Switzerland will release their monthly unemployment rate.
There is some coronavirus (Covid-19) headlines that could influence the price action of the safe haven spot gold futures contract. The United States has also reported, as schools reopen for in person classes, that half a million school aged children have now tested positive for the Covid-19 virus.
Also of note, is that there is news surrounding a possible Covid-19 vaccine. AstraZeneca has announced that they will temporarily pause their coronavirus vaccine testing.
Daily Spot Gold Technical Analysis
Looking at the above four (4) hour spot gold chart, there is a rather formidable layer of technical support in play at $1,912.50 per ounce. Price action has challenged this barrier at least five times but it has held. There were some shallow wicks breaking below this technical support level but no daily close below.
Looking at the trend lines, dotted falling trend line has been challenged twice and has held capping gains. The second downward sloping trend line, in black, has also held several time protecting the downside from steep losses.
Looking at the technical indicators, which are mixed, the MACD histogram is in the green. The signal lines are still under the zero level. The relative strength index (RSI) is trending away from the oversold region. However, the RSI appears to have formed a bullish divergence.
