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.