XAUUSD, Day – At the start of the week, gold prices have fallen by $27, breaking down the key support to 1696. Meanwhile the rate of new infected cases and deaths from Covid-19 in the United States began to improve. The numbers have dropped to the lowest level since the outbreak in April.
Apart from this many countries around the world are ending the lockdown period. That means that the manufacturing and service sectors will be able to resume operations, even though some restrictions will continue until the end of the year at least. This is an attempt to get an economic recovery as soon as possible.
It should not be forgotten that the central bank’s QE measures against Covid-10 may become a side effect that will follow after this. The gold price is one asset that may have been directly affected.
From the technical perspective, after the rise of gold prices seen in April the past 3 days, we have identified a reversal. In the H1- and H4 chart we can see the increase of bearish bias as the price is breaking through the lower border of the BB as the MACD lines turned negative with signal line above histogram, suggesting the increase of negative momentum.
In the Daily time frame, a double top has been posted, with the first support target being at the low area seen last week around 1670.
Click here to access the HotForex Economic Calendar
Chayut Vachirathanakit
Market Analyst – HF Educational Office – Thailand
Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in Leveraged Products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
