Forex Marketz Daily Forex News – Fully Markets Update
Looking at the widely traded spot gold futures contract, the yellow metal is starting to lose upside momentum.
Price action, on the above daily MT 4 price action chart is struggling to extend gains as market optimism is fairly positive.
A stronger U.S. dollar is also not helping the spot gold futures contact. A stronger greenback makes it more expensive for gold traders, who use other currencies, to buy, store and insure the yellow metal.
Today’s economic calendar will feature monthly ISM manufacturing purchasing managers’ index for the United States. Markit will also publish their final U.S. Markit flash monthly purchasing managers’ index.
The European Union will also release their final Markit flash monthly purchasing managers’ index (PMI). Germany will release monthly retail sales data and the euro area is publishing their monthly Sentix investor confidence index.
The United Kingdom has no economic data scheduled for release on Monday.
Spot Gold Technical Analysis (XAU/USD)
Looking at the 14 day relative strength index on the above spot gold futures (XAU/USD) chart, the indicator has fallen towards the mid-line at fifty (50). This is a possible signal that gold buyers are losing some control and a possible correction lower is imminent.
Also, price action has also seen the popular XAU/USD contract close below the rising trend line for the last two trading days. This short-term rising trend line has been in play since 31 March.
There is initial technical support lining up at the twenty (20) day simple moving average which is at $1,740 per ounce. This is above the fifty (50) day simple moving average and 23.6 percent Fibonacci level.
A daily close below the 50 day simple moving average opens the door for $1,720 per ounce.
On the upside, initial technical resistance lines up at the 38.2 percent Fibonacci level at $1,785 per ounce. The next upside barrier is at the round and psychological number of $1,800 per ounce.
This is the 100 day simple moving average as well. The next upside level lines up at $1,820 per ounce.
