Forex Marketz Daily Forex News – Fully Markets Update
The gold futures contract on the above daily MT 4 price action chart, is not looking like it is in a good position. Price action is pointing lower after the spot contract broke below the one hundred (100) day simple moving average (SMA) for the first time since 23 March.
Today, traders will be watching the European Central Bank (ECB). The European Central Bank is announcing their overnight cash rate decision as well as monetary policy. The ECB will also release their monetary policy statement and ECB President Christine Lagarde will be holding a press conference.
The ECB is expected to remain on the sidelines but signal further accommodative monetary policy actions in December which could include further asset purchases or a rate cut. As far as economic data is concerned, the Eurozone is publishing monthly unemployment claims data.
The United States will publish their initial look at their third quarter gross domestic product (GDP) as well as their first look at the third quarter GDP price index. The United States will also release weekly labor data and monthly pending home sales. Both Canada and the United Kingdom have no economic data scheduled to be released.
Daily Spot Gold Technical Analysis
On Wednesday, the spot gold contract lost 1.67 percent and closed below the 100 day SMA. This turns the long term technical support level into a technical upside barrier now located at $1,887 per ounce.
The spot gold contract is also trading below a ring trend line in play from the 28 September and 14 October low price points.
The 14 day relative strength index (RSI) has also turned bearish and below the mid-line at fifty (50). The MACD histogram is also trending below zero as the trend is pointing south.
With that said, there is immediate technical support lining up at the 28 September low price point at $1,848 per ounce. On the flip side there is immediate technical resistance lining up at $1,910 per ounce.
