Gold trading in a channel ahead of Fed speakers
Gold failed to recover as it erased overnight gains during Tuesday North American session as market players are on the look out for another round of Federal Reserve speakers.
In addition, market players are also anticipating Wednesday’s minutes of the Fed’s latest policy meeting for further guidance on the timing of the next US rate hike.
Futures are currently pricing in around a 73% chance of a hike at the Fed’s June meeting.
It is also worthwhile to note that Prices of the yellow metal rose to an overnight peak of $1,263.80 as investors reacted to the news of a deadly suicide bombing at a pop concert in Manchester.
At least 22 people were killed, including some children, and 59 injured by a suspected suicide bomber at the end of a concert by U.S. pop singer Ariana Grande at Manchester Arena on Monday night.
EUR/USD Daily Outlook
With 1.1161 minor support intact, intraday bias in EUR/USD remains on the upside for a further rally. We stay cautious on strong resistance from 1.1245/98 (138.2% projection of 1.0339 to 1.0828 from 1.0569 at 1.1245) resistance zone to limit upside and bring reversal. However, decisive break of 1.1298 will carry larger bullish implication and target 1.1615 resistance next. On the downside, below 1.1161 minor support will turn bias neutral first.
In the bigger picture, the case for medium term reversal continues to build up with EUR/USD now far above 55 week EMA. Also, bullish convergence condition is seen in weekly MACD. Focus will now be on 1.1298 key resistance. Rejection from there will maintain medium term bearishness and would extend the whole
down trend from 1.6039 (2008 high). However, firm break of 1.1298 will indicate reversal. In such case, further rally would be seen back to 1.2042 support turned
Now is your chance to make a profit!
Open an account here!
***Information contained in this news letter are gathered from third parties and should not be regarded in any way as trade advice or recommendations by CM Trading. CM Trading does not recommend or advise traders or investors in their decision making, but merely provides information from the market for its clients as additional information being made available as per the events occurring in the financial markets.
HIGH RISK WARNING:
Trading Foreign Exchange (Forex) and Contracts for Differences (CFD’s) is highly speculative, carries a high level of risk and may not be suitable for all investors. You may sustain a loss of some or all of your invested capital, therefore, you should not speculate with capital that you cannot afford to lose. You should be aware of all the risks associated with trading on margin.
© Copyright 2015 – CM Trading – All rights reserved