Commodities Economy Forex News

XAU/USD seen shredding in red after the market open

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The Investors and traders are keeping their eyeballs on the overall direction of XAU/USD. The commodity was seen shredding in red after the Monday market open. The U.S. Manufacturing PMI report at 2:00 pm GMT is the news to keep looking for.

Although the major news to consider is the U.S Non-Farm Payrolls report on Friday as it can alter the market’s overall movement.

The U.S. dollar endures higher territory from fundamental analysis views amid growing covid attention globally and weak U.S. economic data.

Gold prices are always more sensitive to U.S. economic data. XAU/USD and Dollar have a negative correlation. The asset had an impact while the Dollar gained its strength a bit. This in terms made the gold slide down and ranging between 1832.40 resistance and 1794.32 support.

XAU/USD Daily chart Analysis

XAU/USD was seen trading at the recent dead low price of 17508.86 on June 29th. But then, over a doji and double bottom in 4hr time frame, it was seen moving up. XAU/USD was also able to accumulate close to 82 pips.

The current price of XAU/USD is 1807.33. Looking from the view of Price action. The Gold is following the trendline while prices are moving between 1916.63 at high and 17508.86 at low.

The overall price still seems to be on the bearish side with selling pressure. Talking about the short-term trade, the prices could not break the recent high. This means we need to wait for the break of the swing low and make a new swing high without breaking the previous price.

If prices break the Low and make a Lower low, then it can be a potential sell signal. keeping in mind the trendline that is approximately 20 pips from the current price is important. At last, NFP news and affected assets analysis will be updated on MetaNews.

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Justin N. Richards

Justin N. Richards is a Florida-based technical analyst, market researcher, educator, and trader. Justin began his career in Chicago in 2001 performing futures market analysis for floor traders at the Chicago Board of Trade and the Chicago Mercantile Exchange. He also worked for numerous brokerage firms during that time, all of which hold him in high regard, and he has been providing outstanding analysis services for traders worldwide ever since. Mr. Richards is an expert in the area of market patterns, price and time analysis as it applies to futures, Forex, and stocks. In addition to these talents, he provides educational services for investors looking to improve their analysis and trade skills. Justin has a B.A. in Business Administration from UCLA and an M.S. in Financial Markets and Trading from the Illinois Institute of Technology. Justin’s professional experience, education, and discipline, not only make him an exceptional analyst, they point him out as a reliable, hard working and intelligent business strategist who is dedicated to his craft.
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