Forex Marketz Daily Forex News – Fully Markets Update
The widely traded spot gold futures contract rebounded a bit on Wednesday. This comes after the U.S. dollar weakened after monthly labor data was released.
The private ADP non-farm payroll change for June was closely watched by spot gold traders. The June ADP non-farm payroll change showed U.S. firms added 692,000 new jobs. This was above the median forecast of 600,000. This was an initial boost to the greenback which then settled down boosting the yellow metal.
The United States is releasing labor data from the Labor Department. This is the weekly initial and continuing jobless claims from. The monthly JOLTs jobs cuts is also on the schedule. ISM will publish their monthly manufacturing purchasing managers’ index. The United Kingdom will release final monthly manufacturing purchasing managers’ index (PMI).
The European Union is publishing final monthly manufacturing purchasing managers’ index (PMI) as well as their monthly labor data. Germany will publish monthly retail sales data. Spain is publishing monthly purchasing managers’ index data. Italy is releasing monthly labor data.
Daily Spot Gold Technical Analysis (XAU/USD)
Looking at the above daily MT 4 price action chart, the 14 day relative strength index (RSI) rose to 35 along with the recovery for the spot gold futures contract. The relative strength index is still below the mid-line as we enter into Thursday’s trade session during the Asian trade hours.
Gold traders should note that the relative strength index is still in oversold territory but the gold bullion lacks any upside momentum, for now, to make significant gains.
On the upside this futures contract (XAU/USD) has initial technical support in play at $1,785 per ounce. A daily close above $1,785 opens the door to challenge the 100 day simple moving average lining up at $1,790 per ounce. The key psychological level and fifty percent Fibonacci level at $1,800 comes into focus next.
On the downside there is initial support lining up at the 29 June low price point at $1,750 per ounce. The next downside barrier lines up at $1,730 per ounce.
