Daily Technical Analysis by FxGrow

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FxGrow Fundamental Analysis – 21st April, 2017
By FxGrow Investment Research Desk

All You Need to Know About French Elections And Its Impact on EUR/USD Levels

French elections are knocking on doors and bets are already placed by markets on every candidate and their agendas. Now, whoever qualifies for the second round, will have a huge impact on market despite the outcome. the race is tight, and on Sunday, 23rd of April, French citizens will elect two candidates out of four who shall be eligible for the next round on May the 7th. Although this may seem irrelevant, but market should pay attention that UK parliament will be dissolved on May the 2nd, and if both dates ( May 2nd & May 7th), combined together, market will be chaotic taking into consideration UK and France, two nations representing top ten markets contributing to global economy.

This election comes within a year of the unexpected Brexit vote in the UK and the election of populist Donald Trump as president of the United States last November.

In France, the possibilities are no less dramatic with the steady advance of the far-right National Front’s Marine Le Pen taking advantage of recent threats and terror attacks on Europe.

Note: There are eleven French candidates running on April 23rd, but according to polls, it’s more likely that the four candidates; Le Pen, Macron, Mélenchon, and Fillon being triumphed or qualifying for second round on May 7th 2017. In case one of the four nominees managed to secure more than 50% of French voters, then the second round on May 7th will be discarded and a winner will be announced

First, let’s identify the four French candidates and their agenda, after that, the picture will purify and how the market will head especially for the EURO coming future.

1- What does Le Pen want:

[ul]
[li]Negotiation with Brussels on a new EU, followed by a referendum.
[/li][li]“Automatic” expulsion of illegal immigrants and legal immigration cut to 10,000 per year following an immediate total moratorium.
[/li][li]“Extremist” mosques closed and priority to French nationals in social housing.
[/li][li]Retirement age fixed at 60 and 35-hour week assured.
[/li][/ul]

2- What does Macron want:

[ul]
[li]€50bn (£43bn; $53bn) public investment plan to cover job-training, exit from coal and shift to renewable energy, infrastructure and modernisation.
[/li][li]Reimbursement of full cost of glasses, dentures and hearing aids.
[/li][li]Big cut in corporation tax and more leeway for companies to renegotiate 35-hour week.
[/li][li]Cut in jobless rate to 7% (now 9.7%).
[/li][li]Ban on mobile phone use in schools for under-15s and a €500 culture pass for 18 year olds.
[/li][/ul]

3- What does Mélenchon want:

[ul]
[li]Voting from age of 16 and a “Sixth Republic” to replace the existing presidential system.
[/li][li]Constituent assembly to acquire greater powers, voted in by proportional representation.
[/li][li]Zero homelessness and full reimbursement for prescribed health care.
[/li][li]Recognize burn-out as an occupational disease.
[/li][li]Sharp-tongued Mélenchon galvanizes left.
[/li][li]Abandon nuclear power
[/li][li]Renegotiate the terms of France’s EU membership
[/li][/ul]

4- What does Fillon want:

[ul]
[li]To scrap half a million public sector jobs and the 35-hour work week
[/li][li]Removing the wealth tax (ISF)
[/li][li] To strip jihadists returning from the wars in Iraq or Syria of French nationality
[/li][li] Requiring parents in receipt of social allowances to agree to a “parental responsibility contract”, to tackle children’s absenteeism or behaviour “disrespectful of the values of the [French] republic”
[/li][li]Lifting EU sanctions on Russia and helping Syrian President Bashar al-Assad defeat so-called Islamic State (IS).
[/li][/ul]

Who will win?

According to pollsters, 48-year-old Le Pen, an anti-EU candidate, is expected to qualify for the second round but ultimately lose to Emmanuel Macron, 39. A Le Pen victory would send shock waves every bit as seismic as events in the UK and US, likely spelling the end of the European Union in its current form. Her victory would also domestically test the country’s already strained relations with its sizable Muslim community.

What will happen to EURO?

Now we have established the above candidates and their agendas, the main concern for traders and EURO future levels are whether France will stay in EU or depart. Le Pen and Macron are more likely to qualify for the second round, but that’s not the problem. Le Pen ( Anti EU ) and Macron ( Pro EU ) will still commit to EURO bear and bull forces.

Scenario 1:

If Macron was on top and Le Pen second, optimism will arouse as France will still be part of EU cartel despite Le Pen qualifying for second round taking into consideration that Macron scored more votes which should boost and energize EURO facing U.S Dollar rival.

Scenario 2:

On the other hand, if Le Pen came first and Macron second, this indicates that Le Pen odds of heading the final round will more likely increase and the doubt about Frexit will start creeping into minds, which will result in EURO collapsing.

Scenario 3:

A qualification for Mélenchon will still support French EU membership although Mélenchon calls for a reformation between France and EU treaties, but has never called for a break from EU union.

Scenario 4:

Fillon (Pro EU) supports France being part of the EU and calls lifting sanctions on Russia which should ease the tension between Europe and Russian, and this could result in an economic growth for both countries as they both benefit and EURO could boost up on positive expectations.

Technical overview:

Market will witness high volatility for EUR/USD levels especially on Monday opening trading sessions due to the French election end results. EUR/USD bullish forces could hike towards 1.100 resistance level as optimism arouses given that France will stay in the EU. On the other hand, in case EUR/USD collapses, expectations of bearish trend could bottom at 1.0450 support level. Resistance and support levels could take time to be reached depending on the consequences of the election.

For more in depth Research & Analysis please visit FxGrow.

Note: This analysis is intended to provide general information and does not constitute the provision of INVESTMENT ADVICE. Investors should, before acting on this information, consider the appropriateness of this information having regard to their personal objectives, financial situation or needs. We recommend investors obtain investment advice specific to their situation before making any financial investment decision

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FxGrow Fundamental Analysis – 24th April, 2017
By FxGrow Investment Research Desk

EUR/USD Gaps Upward Over French Election Pollsters, Eyes on Local Data

EUR/USD inaugurated early trading sessions with a +190-pips upward gap, then added +2-pips and clocked 5 months a half high at 1.0918 driven by optimism aroused by yesterday’s French Election first round outcome given that Macron (Pro EU) headed first with 23.7% of French voters, Le Pen (Anti EU) second 21.7%. But what really boosted EUR/USD is that Fillon (Pro EU) came third with 19.9% and has requested his supporters to add their votes to Macron, hence an EU dissociation now falls into a thin scenario but still, a second round will be conducted on May the 7th where Macron and Le Pen face each others neck to neck, and Frexit will a greasy item on the menu which will create a high volatility of the pair trading coming days, depending on how French Polls play ahead.

The pair failed to guard the 1.09 level, retreated to 1.0820 low as minor down-trend correction, currently trading 1.0864 intraday. U.S Index also gaped -$0.78 with a 98.83, adding -$2.41 losses to April the 10th 101.24 high. Although EUR/USD currently bullish, market should expect a choppy bullish and bearish sideways trade for the pair in the coming hours. Trade could be poised with shy price action in the coming 2 hours ahead of German Ifo and Buba reports, but volatility should re-kick after the release.

Fundamentals:

1- EUR -German Ifo Business Climate today at 8:00 AM GMT.

2- EUR - German Buba Monthly Report today at 10:00 AM GMT.

Technical Overview:

Trend: Bullish Sideways

Resistance levels: R1 1.0924, R2 1.0962, R3 1.1005

Support levels : S1 1.0818, S2 1.0755, S3 1.0681

Comment: The market is bullish with expectations of intensive choppy sideways trade due to the above fundamentals. Dips should fight S1. Closing above 1.08 is positive. A penetration for R1 level projects additional hikes towards R2 level. A penetration for S1 level will increase selloffs and wash towards S2 level at which below, the cable will turn bearish. Keep an eye on U.S index levels.

For more in depth Research & Analysis please visit FxGrow.

Note: This analysis is intended to provide general information and does not constitute the provision of INVESTMENT ADVICE. Investors should, before acting on this information, consider the appropriateness of this information having regard to their personal objectives, financial situation or needs. We recommend investors obtain investment advice specific to their situation before making any financial investment decision

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FxGrow Fundamental Analysis – 24th April, 2017
By FxGrow Investment Research Desk

Copper Slips Over Industrial Demand Decline

Copper extended the bearish momentum for the third consecutive weak and suffered losses amid a broad decline for industrial metals on Friday as worries over political instability and global demand prompted investors to cut bets on higher prices. Currently, copper is trading 255.65 intraday.

Investors have overestimated global growth and the impact of supply disruptions at major copper mines, said Norbert Rucker, head of commodity research at Julius Baer. Copper could slip to $5,200 a tonne in the next three months, he said.

• COPPER SUPPLY: The global refined copper market had a 51,000 tonne surplus in January, up from a 44,000 tonne surplus in January last year, the International Copper Study Group (ICSG) said. But the strike at the Escondida mine in February-March meant “next month’s report should reflect a tighter market”, analysts at ING said.

• FREEPORT EXPORTS: Freeport McMoran Inc’s Indonesia unit has been granted a permit to export 1.11 million wet metric tonnes of copper concentrate until February of next year, a trade ministry official said. (Reuters).

• FREEPORT STRIKE: Freeport also warned that it would punish workers for absenteeism at its Indonesian operation, a day after one of its main unions announced plans for a one-month strike over employment conditions. (Reuters).
  Technical Overview:

Trend: Bearish

Resistance levels: R1 257.01, R2 259.36, R3 261.69

Support levels : S1 254.04, S2 249.35, S3 246.10

Comment: The market is triggering a downturn from congestion and targets a stretch down under 249.00. A close below 249.00 is bearish. Any correction should stay contained under 260.00 and use congestion to bear flag. A close above R3 level is needed for trend reversal and shift to higher prices.

For more in depth Research & Analysis please visit FxGrow.

Note: This analysis is intended to provide general information and does not constitute the provision of INVESTMENT ADVICE. Investors should, before acting on this information, consider the appropriateness of this information having regard to their personal objectives, financial situation or needs. We recommend investors obtain investment advice specific to their situation before making any financial investment decision

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FxGrow Fundamental Analysis – 25th April, 2017
By FxGrow Investment Research Desk

Aussie Declines Despite Weaker U.S Dollar, Eyes On Local CPI

8 AM GMT, Australian dollar is showing weakness with 0.7530 weekly low with -41-pips price action, slightly (3-pips) below 200 SMA D1. Although U.S Dollar plunged today to 98.85 low, the Aussie failed to take advantage of current pale U.S Index. AUD/USD levels awaits local CPI tomorrow and on previous session, Australian CPI booked 0.5% and forecasts are expected to be 0.6%. U.S Consumer Confidence today also could add more pressure on the Aussie as U.S Dollar reacts on the outcome.

Latest inflation report released by Reserve Bank of Australia RBA indicates an inflation of 1.5% on Dec 2017. RBA Gov. Lowe will cross wires on Asian session this Thursday, and taking into consideration that CPI is highly positive as forecasts, and inflation less than 2%, expectations of a hawkish tone by Lowe is high where the Gov. could extend previous press conferences laying out a strong Australian economy which should re-boost the Aussie.

Fundamentals:

1- USD - Consumer Confidence today at 2:00 PM GMT.

2- AUD - Consumer Price Index tomorrow at 1:30 AM GMT.

3- AUD - RBA Gov. Lowe speech opening session on Thursday.

4- USD - Core Durable Goods Order and Unemployment Claims both at 12:30 PM GMT on Thursday.

Technical Overview:

Trend : Sideways

Resistance levels : R1 0.7605, R2 0.7672, R3 0.7745

Support levels : S1 0.7505, S2 0.7439 , S3 0.7355

Comment: Expectation of high volatility for AUD/USD due to the colorful economic events. Gov. Lowe speech will set the tone the Aussie, as for U.S Dollar, the U.S Data will determine how U.S Index will perform the next hours.

For more in depth Research & Analysis please visit FxGrow.

Note: This analysis is intended to provide general information and does not constitute the provision of INVESTMENT ADVICE. Investors should, before acting on this information, consider the appropriateness of this information having regard to their personal objectives, financial situation or needs. We recommend investors obtain investment advice specific to their situation before making any financial investment decision

[John_Sanders]

Thanks for this analysis , i made more than 255$ of profits trading in the Aussie

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FxGrow Fundamental Analysis – 03rd May, 2017
By FxGrow Investment Research Desk

Crude oil Slips Over Signs of Increasing U.S Oil Inventories And Weaker OPEC Compliance

Crude Oil prices plunged to $47.47 low on Tuesday, adding additional losses for this week with -$1.80, almost 3%, and on Wednesday, crude scored $47,80 low, currently trading 48.18 intraday. Crude bearish forces were the result of two factors.

1- U.S. production increased by more than 450,000 barrels per day (bpd) in the past five months ending in Feb, according to the U.S. Energy Information Administration (EIA). Total U.S. crude production has increased from a recent low of 8.567M bpd in Sep to 9.031M bpd in February (“Petroleum Supply Monthly”, EIA, April 28). Production continued rising in March and Apr, and now stands at over 9.2M bpd, according to weekly estimates published by the agency (“Weekly Petroleum Status Report”, EIA, April 26).

The rapid recovery in U.S. output is one of the factors making market re-balancing slower than OPEC anticipated. Most of the increase so far has come from non-shale producers in the Gulf of Mexico and Alaska. But the massive increase in the number of rigs drilling onshore should ensure shale output rises substantially in the remainder of 2017. Gulf of Mexico output rose by 228,000 bpd in the five months to February, while onshore production from the lower 48 states increased by 175,000 bpd and Alaska’s output rose 61,000 bpd. (Reuters).

2- OPEC oil output fell for a fourth straight month in April, a Reuters survey found on Tuesday, as top exporter Saudi Arabia kept production below its target while maintenance and unrest cut production in exempt nations Nigeria and Libya. But more oil from Angola and higher UAE output than originally thought helped OPEC compliance with its production-cutting deal slip to 90 percent from a revised 92 percent in March, according to Reuters surveys.

Eyes are focused now on May 25th where OPEC will meet again in Vienna where they will decide on extension for end of 2017. OPEC had already met on the end of 2016 where they agreed to cut oil production till June 2017 with efforts to curb global oil supply, which resulted in in highest levels for crude oil at $55.22 bp on Jan 2017.

There seems to a be a general consensus to do so, Khalid Al-Falih, the Saudi minister of energy and industry and the de-facto OPEC leader, said last week. The United Arab Emirates insisted Tuesday that all participants – which include some non-OPEC nations such as Russia – need to commit to the effort. If OPEC meeting on 25th May was successful, market should expect a new crude record for 2016 aimed at $60 bp.

Today U.S Inventories will be published at 2:30 PM GMT which should bring new perspectives for crude levels.

Technical Overview:

Trend: Down / Sideways

Resistance levels: R1 49.22, R2 50.17, R3 51.15

Support levels: S1 47.51, S2 46.94, S3 46.17

Comment: The market remains bearish but U.S crude inventories today should bring new perspectives for oil levels. A penetration for R1 level projects further bullish hikes with targets R2&R3 level. Closing below S1 will increase further selloffs and wash towards S2 level. A close above R2 level alerts for trend reversal and only closing above R3 confirms that market has shifted upward and crude to be considered bullish.

For more in depth Research & Analysis please visit FxGrow.

Note: This analysis is intended to provide general information and does not constitute the provision of INVESTMENT ADVICE. Investors should, before acting on this information, consider the appropriateness of this information having regard to their personal objectives, financial situation or needs. We recommend investors obtain investment advice specific to their situation before making any financial investment decision

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FxGrow Fundamental Analysis – 03rd May, 2017
By FxGrow Investment Research Desk

Heads Up For FOMC Meeting Tonight

Market is poised with confusion about FOMC meeting tonight and possible outcomes. It is largely expected more than 90%, that US Fed are to leave current Interest Rates at current 1.00% without any changes which should send a short-term negative reaction, awaiting FOMC statement.

Now we have established the fact the U.S Central Banks will not touch the rates tonight, the statement and the following press conference will take center stage and as policymakers seem to shirt the path of monetary and fiscal from rates to the balance sheet. Yellen and Co. will cautiously choose their words with efforts to withhold U.S Dollar from further declines.

Last March during FOMC meeting, Yellen mentioned that changes on the balance sheet will depend on economic conditions, and latest data including weak GDP last week and poor macroeconomic readings have lead markets to doubt that the central bank will raise rates two more times this year, with three “live” meetings ahead that could offer such outcome: June, September and December.

If the FOMC meeting hinted that market should not expect a hike during June, markets will assume that chances for additional rate increase this year will be left at one taking into consideration that the U.S Fed will unlikely to raise rates on two consecutive sessions. This would result in a negative impact for U.S Dollar. But in case June is left on the rate menu with high odds, a chances for two hikes including this June and end of Year 2017, this should handle boosting the U.S Dollar for the short-run.

A hawkish scenario is unlikely, and unless the Fed clearly indicates that two rate hikes are still on the table, dollar gains are likely to be short-term and limited, not enough to revert the sour tone that surrounds current pale U.S Dollar. Last U.S Fed hike that resulted in 0.25%, it was seen that U.S Dollar dipping instead of surging. This was justified that March hike was largely expected and market traded on " Buy the rumor, sell the fact".

For more in depth Research & Analysis please visit FxGrow.

Note: This analysis is intended to provide general information and does not constitute the provision of INVESTMENT ADVICE. Investors should, before acting on this information, consider the appropriateness of this information having regard to their personal objectives, financial situation or needs. We recommend investors obtain investment advice specific to their situation before making any financial investment decision

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FxGrow Daily Technical Analysis – 04th May, 2017
By FxGrow Research & Analysis Team

Sterling Retreats as U.S Dollar Strengthen, Eyes on Local PMI

Yesterday, market was cheerful and satisfied with FOMC statement despite the fact that U.S Interest Rates were left unchanged at current 1.00 as market were already expecting it. June odds were increased up to 75%, as a result, GBP/USD had to submit to bullish U.S Dollar with -82-pips price action and 1.2864 low.

Today, GBP/USD clocked 1.2850 May-fresh-lows as U.S Index still under the positive shock with 99.32 high. Currently the pair is trading 1.2857 intraday with expectations of additional declines, but the pair should withhold the bullish trend unless GBP/USD breaks the 1.27 handle.

On the other hand, PM May has launched an extraordinary attack on Brussels, accusing European Union politicians and officials of seeking to disrupt the general election and willing Brexit to fail in a combative address delivered from Downing Street.

Speaking after returning from Buckingham Palace to inform the Queen that parliament had been dissolved for the 8 June poll, May delivered an unexpectedly antagonistic speech, urging voters to “give me your backing to fight for Britain”.

UK is set to release local Services PMI today along with U.S Unemployment claims which will give a better outlook on how the pair will perform the coming hours.

Fundamentals:

1- GBP - Services PMI today at 8:30 AM GMT.

2- USD - Unemployment Claims today at 12:30 PM GMT.

3- USD - NFP - Non-Farm Payrolls tomorrow at 12:30 PM GMT.

Technical overview:

Trend: Bullish Sideways

Resistance levels: R1 1.2966, R2 1.3071, R3 1.3176

Support levels: S1 1.2774, S2 1.2678, S3 1.2578

Comment: The pair remains bullish with choppy sideways trading taking into consideration current strong U.S Dollar status. Dips should fight S1 level. Closing above 1.2760 is positive. A penetration for S1 level will increase selloffs and wash towards S2 level. Closing above R1 level projects further bullish waves towards R2 level. The pair to be considered bearish if market closed below S2 level.

For more in depth Research & Analysis please visit FxGrow.

Note: This analysis is intended to provide general information and does not constitute the provision of INVESTMENT ADVICE. Investors should, before acting on this information, consider the appropriateness of this information having regard to their personal objectives, financial situation or needs. We recommend investors obtain investment advice specific to their situation before making any financial investment decision.

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FxGrow Fundamental Analysis – 04th May, 2017
By FxGrow Investment Research Desk

How Will The French Presidential Election Affect Forex Market?

Time is ticking, French Presidential Election is knocking on doors and this Sunday, French citizens will have the upper hand as they will decide the EU coming future. For once and for all, Frexit will either re-surface or lay to rest depending on the final outcome this Sunday, May 7th 2017. Bare in mind, whoever wins, there will be consequences on the financial market in general, but EURO will take center stage.

Two candidates ( Macron and Le Pen ) has qualified for the final round, and latest polls indicates that Macron is ahead by 60% and Le Pen is behind by 40% taking into consideration that Fillon who came third in the first round has requested his supporters to add their voices to Macron, and Melenchon as left-wing voters are committed to prevent Le Pen from claiming the rein. But that’s election, and nothing is guaranteed, and if we go back a bit in history to U.S elections, polls gave Clinton the priority, and market saw Trump triumph as shocking. So below, we will place the possible scenario and the outcomes despite what polls are signaling and indicating although their is one major difference, the gap poll between Macron and Le Pen is way wider than the gap poll that was between Clinton and Trump.

Scenario one ( Macron Winning the French Election):

Market is already priced in on the fact Macron is winning, and during the first round, as Macron was heading the polls, EURO gaped upward, hitting five months highs, and if Macron is officially declared a president, optimism will increase further more pushing EURO to higher levels with 1.10 or 1.11 as target. Macron calls for a sharper Pro-EU tone and sees EU as a whole nation, which should push EU stocks and CAC40 even higher. On the other hand, Gold gapped downward and later on fell by $30 as political tension seemed to fade away.

Scenario two ( Le Pen winning the French Election ):

Before we discuss what will happen to the market, first lets briefly state what Le Pen stands for. Le Pen represent the total opposite of Macron and sees France as an independent nation, calling for a referendum by French citizens to vote for a departure from European Cartel following the path of UK voting for Brexit. We all remember what happened on Brexit and how the EURO and British Pound was on a roller coaster. If Le Pen was declared winner, then fear will creep into minds and gossips about Frexit will be on the French menu. Take at that, EURO will start the process of depreciating gradually with 1.600 and 1.500 as target as early signs. The more Frexit approaches and becomes a reality, markets could witness even lower levels than 1.500. European stocks will plunge as well CAC40, and the biggest winner will be gold as geopolitics play its role in pushing the yellow metal into higher levels for 2017, being a sacred haven substitute.

French presidential candidate Marine Le Pen crossed the wires last minutes today, via Reuters, noting that Italy would welcome her efforts to renegotiate the Euro, in case she wins the election.

The below fourth and fifth scenarios are less likely to happen, but part of analysis, it’s our duty to include all possible outcomes.

Scenario Three: It’s never about who wins:

It’s never about who wins despite the fact Le Pen or Macron being victorious. The fact the France has a new president will push EURO higher. During U.S elections, market and analysts were divided with different opinions on how will the market perform and will happen to U.S Dollar taking into consideration what Clinton and Trump, each of them stand for. The fact there was a president in the oval office boosted U.S Dollar and American Stocks rallied, add to that, Dow Jones hit news records. Taking at this, we could see a possible scenario on the short run, but as time narrows down with each president agendas (long run), we will see how EURO and EU Stocks will perform depending on impact level of each president agenda.

Scenario Four: Market is already Priced in that Macron is a Winner:

This is the least possible scenario. Market has placed its bets that Macron is a winner, and has traded on this fact. The optimism is expired, EURO and EU Stocks has already peeked as if France is staying in the EU, so it will bring nothing new to traders mind. EUR and EU Stocks will stay put and even make a minor correction upward or downward. Later economic data will shape up the Forex market including EURO, EU Stcoks, and CAC40, depending on the outcome (Economic Data) as part of ebb and flow between currencies.

For more in depth Research & Analysis please visit FxGrow.

Note: This analysis is intended to provide general information and does not constitute the provision of INVESTMENT ADVICE. Investors should, before acting on this information, consider the appropriateness of this information having regard to their personal objectives, financial situation or needs. We recommend investors obtain investment advice specific to their situation before making any financial investment decision

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FxGrow Daily Technical Analysis – 05th May, 2017
By FxGrow Research & Analysis Team

EUR/USD Inclines As U.S Dollar Declines, Eyes on U.S Data

EUR/USD extended the bullish momentum for the eleven consecutive sessions and prolonged the intensity tone facing crisp U.S Dollar. Yesterday the pair rallied +113-pips with 1.0987 high and added 3-pips to clock 1.0990 2017-fresh-highs, surpassing 5-EMA (D1) at 1.0941. U.S Data yesterday was positive which gave a lift to U.S Index up to 99.33 high, but the Index was tackled by Republicans as they voted a green light on Trump’s health-care-bill which was opposed by Democrats, leaving the market divided. As a result, U.S index re-collapsed at 98.54 low, and EUR Index was seen out performing with a 2017 new record 89.07.

The pair is still energized by coming French Presidential Elections this Sunday, May 7th, and as polls supports Macron (Pro EU) 60%, and Le Pen (Anti EU) 40%, which should boost the pair further during the coming hours.

Today, U.S Data is loaded, but the main focus will be on NFP, Non-Farm Payrolls, followed by Yellen speech at night. Yesterday positive data, added to today’s coming data will set the tone for Mrs. Yellen with expectations of a hawkish tone taking into consideration how U.S data performed yesterday and will today, with efforts to boost U.S Index levels higher. Market has seen Trump favoring a lower U.S Dollar, and the fact that Trump and U.S Feds are not in accord grows clearer as events occurs.

Fundamentals:

1- USD - Average Hourly Earnings m/m + Non-Farm Payrolls + Unemployment Rates today at 12:30 PM GMT.

2- USD - Yellen (Head of U.S Fed) speech today at 5:30 PM GMT.

Technical Overview:

Trend: Bullish Sideways

Resistance Levels: R1 1.1002, R2 1.1068, R3 1.1143, R4 1.1205

Support levels: S1 1.0933, S2 1.0859, S3 1.0818, S4 1.0738

Comment: The pair remains bullish with sideways trading. U.S Data today will make a minor correction either positive or negative depending on the outcome. The market pattern gives bull signals for the start of a larger advance. Current congestion over the previous Monday’s gap reinforces the upturn and provides a staging level to launch fresh rallies. A breakout over congestion targets a drive to 1.1068 as well as potentially higher. A close under 1.0818 is needed to reject the upturn.

For more in depth Research & Analysis please visit FxGrow.

Note: This analysis is intended to provide general information and does not constitute the provision of INVESTMENT ADVICE. Investors should, before acting on this information, consider the appropriateness of this information having regard to their personal objectives, financial situation or needs. We recommend investors obtain investment advice specific to their situation before making any financial investment decision.

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FxGrow Daily Technical Analysis – 05th May, 2017
By FxGrow Research & Analysis Team

Gold Recovers Temporary Ahead of U.S Data Release

Gold showed weak recovery symptoms in today trading sessions with a 1235 high, after plunging to 1225.74 low yesterday, but still remains bearish. Yesterday, U.S economic data was positive which added more weight to gold’s bearish forces, but the decline journey was postponed as U.S Republicans voted a yay on Trump’s health-care-bill, replacing Obamacare, and Democrats were repelled by such move. As a result, U.S Dollar shed $0.79 and U.S Index plunged to 98.54 low, giving XAUSUD a chance to take a breath. Gold currently trading 1233 intraday, slightly below 200 EMA (D1) at 1237 which to be considered a critical level.

U.S Economic Data today will have a major contribution to gold levels, with NFP in focus, and Yellen (Head Of U.S Fed) will cross wire afterwards and the most preferable scenario is that FOMC members along with Yellen will guard U.S Dollar from further declines supported by yesterday’s positive data, along with the outcomes of NFP, Average Hourly Earnings m/m, and Unemployment Rate. On the other hand, French Elections this Sunday and tails of uncertainties could provoke gold to peek higher as market sees the precious metal as a sacred haven substitute.

As for physical demand of gold, global gold demand in Q1 2017 was 1,034.5t. The 18% year-on-year decline suffers from the comparison with Q1 2016, which was the strongest ever first quarter. Inflows into ETFs of 109.1t, although solid, were nonetheless a fraction of last year’s near-record inflows. Slower central bank demand also contributed to the weakness. Bar and coin investment, however, was healthy at 289.8t (+9% y-o-y), while demand firmed slightly in both the jewelry and technology sectors. (WGC).

Fundamentals:

1- USD - Average Hourly Earnings m/m + Non-Farm Payrolls + Unemployment Rates today at 12:30 PM GMT.

2- USD - Yellen (Head of U.S Fed) speech today at 5:30 PM GMT.

3- French Presidential Elections this Sunday all day long.

Technical Overview:

Trend: Bearish Sideways

Resistance levels: R1 1237.41, R2 1248.10, R3 1260.22, R4 1278

Support levels : S1 1225.80, S2 1218.23, S3 1208.93, S4 1194.76

Comment: Currently Gold to be considered bearish, but due to U.S Data today and French Elections approaching, we could see high volatility for XAUUSD with choppy sideways destination. A penetration for R1 level projects further bullish waves with R2 level target. Closing above R3 level will shift gold to bullish momentum. The other scenario, in case gold break below S1 level, intensive selloffs with congestion seeing S2&S3 as target.

For more in depth Research & Analysis please visit FxGrow.

Note: This analysis is intended to provide general information and does not constitute the provision of INVESTMENT ADVICE. Investors should, before acting on this information, consider the appropriateness of this information having regard to their personal objectives, financial situation or needs. We recommend investors obtain investment advice specific to their situation before making any financial investment decision.

[FxGrow_Support]

FxGrow Daily Technical Analysis – 08th May, 2017
By FxGrow Research & Analysis Team

EUR/USD Gaps Upward For the Second Time As Macron Heads French Elections

EUR/USD gaps upward for second time as French Presidential Elections end with Macron’s declared winner, beating Le Pen also for the second as the two candidates fold the final round yesterday. Macron collected almost 65% of French voters, and the candidate with his Pro EU sharp tone, eased worries of EU neighbor nations, and Frexit shall never be spoken off, and FRANCE Shall stay in Euro-zone. As a result the pair gapped +23-pips with 6 months french-highs at 1.1021, with a reminder of hold old levels before Brexit took place.

Although expectations that EUR/USD should have surged higher giving the above fundamentals, the fact that markets saw Macron’s triumph as an inevitable taking into consideration the huge gap between him and Le Pen’s polls, which have slowed the intensive bullish attack towards higher levels, and when traders receive news as forecasts, usually markets act less severe to the released news. The pair failed to withhold the 1.10 level, currently trading 1.0970 intraday, but sustaining the 1.09 level should keep bulls waves on stand by motion. EURO Index almost touched the 98 level but failed with 3-pips behind at 98.97 high for today. On the other hand, U.S Dollar remains weak as the Index plunged to 98.54 low this morning.

As for economic data that should influence EUR/USD, the pair awaits low impact news with German Factory Orders m/m and Sentix report today, but giving the circumstances, a positive data today will be like pouring gas on fire as the pair just need a slight push for additional rallies. Tomorrow will be more action with German Industrial Production m/m and German Trade balance, followed by French Gov Budget Balance, and On Wednesday, Mr. Draghi, head of ECB will cross wires and it’s been clear in recent appearances how Draghi Favors lower EUR/USD, so the speech will be highly anticipated with the possible content.

Fundamentals :

1 - EUR - German Factory Orders m/m today at 6:00 AM GMT.

2- EUR - Sentix Investor Confidence today at 8:30 AM GMT.

3- EUR - German Industrial Production and Trade Balance tomorrow at 6:00 AM GMT.

4- EUR- French Gov. Budget Balance tomorrow 6:45 AM GMT.

5 EUR - ECB President Draghi Speech on Wednesday at 12:00 PM GMT.

Technical Overview :

Trend: Bullish Sideways

Resistance levels: R1 1.1027, R2 1.1068, R3 1.1125

Support levels: S1 1.0936, S2 1.0860, S3 1.0778

Comment: The market reminds bullish despite the pair minor retracement. A minor downward correction is expected but staying above S1 level calls for additional rallies. Closing above S2 still remain positive. Dips should fight S1 level, but in case of penetration, S2 will be next destination. Closing below S3 is needed for trend reversal. The other scenario, in case EUR/USD breaks above R1 level, market should expect intensive attacks towards R2, then R3 level.

For more in depth Research & Analysis please visit FxGrow.

Note: This analysis is intended to provide general information and does not constitute the provision of INVESTMENT ADVICE. Investors should, before acting on this information, consider the appropriateness of this information having regard to their personal objectives, financial situation or needs. We recommend investors obtain investment advice specific to their situation before making any financial investment decision.

[FxGrow_Support]

FxGrow Daily Technical Analysis – 08th May, 2017
By FxGrow Research & Analysis Team

Aussie Recovers slightly Over Positive Chinese Trade Balance, Eyes on Local Data

AUD/USD extended the bearish momentum for the fifth consecutive session and has been confined within 63-pips price action since Thursday. Last Tuesday, RBA (Reserve Bank of Australia) kept Interest Rates at current 1.50%, followed by a press conference headed by Gov. Lowe with a dovish tone, later on Thursday, Australian Trade Balance scored 3.11B with -0.55B deficit, compared to 3.66B on previous sessions. As a result the pair lost 161-pips since Tuesday, after plunging to 0.7385 low today.

Today, the Aussie clocked 0.7424 high, showing some signs of recovery as Chinese Trade Balance scored a wider than expected surplus of CNY 262.3bln vs. Ecp. CNY 197.2bln. China April exports up 14.3% on-year, imports up 18.6% in yuan terms for trade surplus of CNY262.30 billion: (Reuters).

On the other hand, U.S dollar managed to recover +$0.35 with a 98.90 high, adding more pressure on AUD/USD. The pair awaits local data tomorrow with Retails Sales and Annual Budget Release which should bring some new levels for the Aussie and in case U.S Index remains weak, the Aussie has the chance to sharpen its tone with possible profits, and vise versa.

Fundamentals:

1- AUD - Retail Sales tomorrow at 12:30 AM GMT.

2- AUD - Australian Annual Budget Release tomorrow at 9:30 AM GMT.

Technical Overview:

Trend: Bearish Sideways

Resistance levels: R1 0.7446, R2 0.7509, R3 0.7585

Support levels: S1 0.7370, S2 0.7330, S3 0.7278

Comment: The pair remains bearish pressured by previous negative local data but tomorrow’s data will give a better outlook for the pair trading levels. A penetration for S1 aligned with congestion will increase further selloffs and wash towards S2 level. Closing above R1 projects further rallies with R2 target. Only a close above R2 is needed to stop bearish forces action and the pair can be considered on the path of shifting trend. Keep an eye on U.S Index levels.

For more in depth Research & Analysis please visit FxGrow.

Note: This analysis is intended to provide general information and does not constitute the provision of INVESTMENT ADVICE. Investors should, before acting on this information, consider the appropriateness of this information having regard to their personal objectives, financial situation or needs. We recommend investors obtain investment advice specific to their situation before making any financial investment decision.

[FxGrow_Support]

[B]FxGrow Daily Technical Analysis – 09th May, 2017[/B]
[I]By FxGrow Research & Analysis Team[/I]

[B]Gold Remains Under Pressure With Sideways Trading, Technical[/B]

Gold dipped yesterday to 1220 but managed to reject bear forces and climbed back to 1236 high, then retreated to 1230 level at which the precious metal found hard time breaking creating a strong support. Later on, 1230 failed and plunged to 1225 as U.S Dollar hiked to 99.03 high. Gold currently trading 1228, and if the XAUUSD stayed below 1228 (H5 Pivot), expectations for further declines towards 1225 S1, in case of penetration, 1218 will be the next destination.

The other scenario, long positions above 1228, market should expect buying demand seeing 1235 a the first station. If gold breaks 1235, traders should see 1239, 1240 as the next stage for gold bull forces. In absence of vital U.S economic news, gold should trade between support and resistance. Price range most preferable is between 1225 and 1236. Keep an eye on U.S Index levels, in case of strengthening, expectations of pressuring yellow metal aligned with congestion. Be careful from set backs at a first test on both support and resistance, only long positions below or above S&R can confirm gold’s next destination.

Trend: Bearish , but sideways trading is more expected.

Five hours pivot 1228

Resistance levels: R1 1231.94, R2 1235.78, R3 1240.21

Support levels: S1 1225.04, S2 1221.95, S3 1218.66

[B][I]For more in depth Research & Analysis please visit FxGrow.[/I][/B]

[I][B]Note:[/B] This analysis is intended to provide general information and does not constitute the provision of INVESTMENT ADVICE. Investors should, before acting on this information, consider the appropriateness of this information having regard to their personal objectives, financial situation or needs. We recommend investors obtain investment advice specific to their situation before making any financial investment decision.[/I]

[FxGrow_Support]

[B]FxGrow Daily Technical Analysis – 10th May, 2017[/B]
[I]By FxGrow Research & Analysis Team[/I]

[B]The Rift Between OPEC And U.S Fluctuates Oil Levels, Eyes on U.S Inventories[/B]

[B]Fundamentals:[/B]

The conflict between OPEC and U.S with opposed interest seeking high and lower oil prices becomes clearer as events accelerate, creating high volatility between ups and downs for oil. It’s obvious that the two parties (OPEC and U.S), OPEC and Non-OPEC counties are highly dependable on crude oil as a source of economical income and they are sufficient as local production, whilst the U.S local oil production does not cover up its local demand, not to mention crude oil imports. Add to that, U.S Shale production is more expensive than oil produced by OPEC counties. Recent Tax plan released by Trump’s administration, cutting corporate tax from 35% to 15%, was highly questioned by analysts as the plan itself, could lead to U.S trade deficit, and since U.S is the highest consumer for crude oil after China, you can understand clearly why the U.S will do its best, keeping markets glutted with oil supply, which logically results in lower oil prices taking into consideration that supply overpasses demand.

On the other hand, OPEC recent meeting and next meeting still in Vienna, focuses on one title, cutting or reducing their oil production in order to curb global glut, keeping it below global demand would result in higher oil prices. OPEC also followed a tactic where a report is released on monthly basis, measuring oil production compliance as a reminder that the higher a compliance is, markets would take the cutting-production-deal more serious, hence pushing oil prices higher.

Now we have established the above fundamentals, traders can understand why oil prices were highly fluctuating like ping pong recently, a strike from U.S, and a respond from OPEC. The sharper tone that the strike is, the more impact it has on oil bullish and bearish forces.

On Friday, oil dipped to $43.73 bp, lowest since Nov-2016, after signs in the Straits of Malacca, dozens of tankers loaded with record amounts of unsold fuel show an OPEC-led agreement to cut production in the first half of 2017 has yet to tighten the market.

Yesterday, Crude levels remained bearish with a higher low than Friday at $45.52 bp after the American Petroleum Institute (API) reported a hefty draw of 5.789 million barrels in United States crude oil inventories, compared to analyst expectations that markets would see a crude oil draw of 1.8 million barrels for the week ending May 5. (Reuters).

Other factors contributed to crude bearish prices report released yesterday showing that Libya’s oil production has reached 780,000 barrels per day – the highest level since October 2014, according to new data collected from an anonymous source by Bloomberg. Oil prices have been tumbling since last week, when both Libya and Nigeria – the countries exempt from OPEC’s production reduction deal – reported climbing outputs as the nations recover from years and months of domestic strife, respectively.

Oil managed to recover from yesterday’s lows after Reuters reported that Saudi Arabia would cut supplies to the region as OPEC battles against rising U.S. output that is threatening to derail its attempts to end a sustained global glut in crude. State-owned Saudi Aramco will reduce oil supplies to Asian customers by about 7 million barrels in June, a source told Reuters, as part of OPEC’s agreement to reduce production and as it trims exports to meet rising domestic demand for power during the summer.

Today, crude oil showed stingy price action with 34-pips with 46.34 high, indication low volatility and it’s expected to remain still, but market should expect higher movements for oil as U.S released its Crude Oil Inventories at 2:30 PM GMT.

Summary: Crude is expected to remain bearish for the short run given the date distance between API reports showing an increase supply, and OPEC and Non-OPEC next meeting on May 25th. On the short run, traders trade on the fact the U.S currently has the upper hand with messages that markets are glutted, and since doubts still revolves around OPEC next meeting and its possible outcomes taking into consideration that OPEC has insisted that the compliance should be mutual by both OPEC and Non-OPEC counties.

[B]Technical Overview:[/B]

Trend: Bearish

Resistance levels: R1 46.74, R1 47.82, R3 48.99 (D1)

Support levels: S1 45.69, S2 44.93, R3 44.10 (D1)

Comment: Friday’s spike reversal still suggests an extreme bottom. Look for retracements over the next few days. We may yet see residual bear forces pull trade down into the spike, but suspect support will emerge at 44.93*. A close under 4493* is needed to resume washouts. Likely any congestion in the upper half of Friday’s reversal will help bottom the market and lead into recovery rallies. A close over 47.47*/47.82* are bullish.

[B][I]For more in depth Research & Analysis please visit FxGrow.[/I][/B]

[I][B]Note:[/B] This analysis is intended to provide general information and does not constitute the provision of INVESTMENT ADVICE. Investors should, before acting on this information, consider the appropriateness of this information having regard to their personal objectives, financial situation or needs. We recommend investors obtain investment advice specific to their situation before making any financial investment decision.[/I]

[FxGrow_Support]

[B]FxGrow Daily Technical Analysis – 10th May, 2017[/B]
[I]By FxGrow Research & Analysis Team[/I]

[B]Gold Remains Bearish With Possible Déjà vu Scenario[/B]

Gold was sold aggressively yesterday failing to re-bounce as the previous metal penetrated several support levels, but managed to hit a break at 1214.30 three-weeks-fresh-lows. Late at night, Trump issued an order where FBI director Comey to be resigned from his duties, as a result, U.S Dollar bullish momentum was tackled with -$0.12 gap and $99.42 closing price. XAUUSD took advantage with a short term 1225.66 correction high for today as U.S Index closed the gap with 99.51 high, forbidding gold to continue the correction mode. Currently gold trades 1222.44 intraday, slightly below its hourly pivot 1224.44 and market could witness the same scenario as yesterday, failure of support levels.

Trend: Bearish

Pivot (H1) 1224.44

Resistance levels: R1 1226.57 , R2 1230, R3 1235, R4 1239.57

Support levels: S1 1220.78, S2 1217.97, S3 1214.66, S4 1211.34

Comment: Gold Remains bearish despite today’s recovery. With absence of U.S economic news, gold should trade technical. Long positions below hourly pivot 1224.44 suggests further declines stretched with yesterday’s dips seeing S2&S3, but dips should hold at 1214. The other scenario, long positions above 1224.44 projects further bullish waves with R1&R2 as target. Keep an eye on U.S Index level.

[B][I]For more in depth Research & Analysis please visit FxGrow.[/I][/B]

[I][B]Note:[/B] This analysis is intended to provide general information and does not constitute the provision of INVESTMENT ADVICE. Investors should, before acting on this information, consider the appropriateness of this information having regard to their personal objectives, financial situation or needs. We recommend investors obtain investment advice specific to their situation before making any financial investment decision.[/I]

[FxGrow_Support]

FxGrow Daily Technical Analysis – 12th May, 2017
By FxGrow Research & Analysis Team

EUR/USD Stands on An Edgy Support Ahead of U.S Data

EUR/USD is showing dull behavior for the past three days finding support by local data but still pressured by recovering greenback. On Tuesday, the pair was lifted by French and Italian data with a high 1.0897 then plunged to 1.0853 low. Yesterday, the pair dipped to 1.0839 low after strong U.S data outcome and was standing on the edge of a support (S1 1.0840) where the pair signaled a potential for additional declines, but EUR/USD found a bullish hand as Trump’s order (FBI Comey) events accelerated through media and interview. As a result the pair reversed losses with a 1.0893 high.

Today, EU data was neutral which postponed the trend confirmation for later coming data as U.S Releases Major events. EUR/USD traded 18-pips price action today with 1.0855 high, below 10-EMA by 27-pips.
Fundamentals:

1- USD - CPI m/m and Core CPI (Consumer Price Index) today at 12:30 PM GMT.

2- Retails Sales and Core Retails Sales today at 12:30 PM GMT.

Technical Overview:

Trend: Bullish / Sideways

Resistance levels: R1 1.0897, R2 1.0944, R3 1.1001

Support Levels: S1 1.0840, S2 1.0811, S3 1.0780

Comment: Overall, EUR/USD remains bullish, but trading close to S1 which in case of penetration, expectations for further dips towards S2 and below it, the pair alerts for trend reversal and closing below S3 is 100% confirmation for bearish momentum. Monday’s reversal still favors near term corrections or congestion. Suspect a fight to bounce off 1.0840. The pair traded lower highs and higher lows between Monday and Tuesday which makes S1 a critical level.

For more in depth Research & Analysis please visit FxGrow.

Note: This analysis is intended to provide general information and does not constitute the provision of INVESTMENT ADVICE. Investors should, before acting on this information, consider the appropriateness of this information having regard to their personal objectives, financial situation or needs. We recommend investors obtain investment advice specific to their situation before making any financial investment decision.

[FxGrow_Support]

FxGrow Daily Technical Analysis – 12th May, 2017
By FxGrow Research & Analysis Team

Gold Shows Good Stamina Ahead of U.S Data

Gold recovered from Tuesday’s 1214 low and steadied afterwards with an incline destination, maximizing profits with almost $5.50 as the precious metal clocks 1229.96 high for today’s session. Yesterday, U.S Data was positive with expectation that gold will break 1214 (Tuesday low), but XAUUSD hit a strong support at 1220 with a abstention for penetration, as a result, support level was successful and gold closed at 1224.70.

Recent events shows that Trump favors lower U.S Dollar, and whenever U.S Index starts to build up, the U.S president is always there on the right time for tackling. Latest event where Trump gave Comey (FBI Deputy) one way ticket vocation had a negative impact on U.S financial market, which contributed to gold bullish forces today and yesterday.

Gold will have to submit for a final test this week as U.S releases hefty data which will re-test XAUUSD’s stamina further more with expectations of heavy impact on market. In case gold followed yesterday’s behavior with inability to break 1220 or Tuesday’s low at 1214, indications are high that gold has finished from the decline journey and a bullish momentum is expected if XAUUSD managed to close above 1240.
Fundamentals:

1- USD - CPI m/m and Core CPI (Consumer Price Index) today at 12:30 PM GMT.

2- Retails Sales and Core Retails Sales today at 12:30 PM GMT.

Technical Overview:

Trend: Bearish Sideways

Resistance levels: R1 1230.34, R2 1235.61, R3 1228.42, R4 1242.17

Support levels: S1 1226, S2 1221, S3 1214, S4 1210.34

Comment: Gold remains bearish unless the market closes above 1240. Expectations are high that spikes would fight R1 level but in case of penetration, gold stretches for bull flags seeing R2&R3. On the other hand, yesterday gold dips were fighting S2 which indicates a strong level allied further selloffs and wash towards S3. U.S data not to be missed and keep an eye on Trump’s next moves.

For more in depth Research & Analysis please visit FxGrow.

Note: This analysis is intended to provide general information and does not constitute the provision of INVESTMENT ADVICE. Investors should, before acting on this information, consider the appropriateness of this information having regard to their personal objectives, financial situation or needs. We recommend investors obtain investment advice specific to their situation before making any financial investment decision.

[FxGrow_Support]

FxGrow Daily Technical Analysis – 15th May, 2017
By FxGrow Research & Analysis Team

EUR/USD Re-Claims 1.0900 Level Over Weaker U.S Dollar

Friday, EUR/USD plunged to 1.0855 low after a neutral EU data giving room for U.S Index to climb towards 99.57 high. Later on U.S released an increased Retails Sales and CPI, not up to expectations which forced analysts to re-consider June Fed Hike odds with a probability placed at 74%, decreased by almost 10%. As a result, U.S Index took a dip and bottomed at 99.02, giving a chance for EUR/USD to reverse losses with +79-pips price action and 1.0934 high.

Monday trading session, the pair added only 1-pip since Friday’s high (1.0935) with 13-pips movement, but currently U.S Index is showing weakness which should give the opportunity for EUR/USD and break another high record for today taking into consideration that U.S Administration is sending wallop signals with recent event. The pair is currently trading 1.0930 intraday, still above its 7-EMA (D1) at 1.0908.

Economic Calendar has zero value for EU and U.S Data, which leave EUR/USD action for technical as fundamentals are absent today.

Technical Overview:

Trend: Bullish Sideways

Pivot : 1.0910

Resistance levels: R1 1.0937, R2 1.0952, R3 1.0966, R4 1.0985 (H1)

Support levels: S1 1.0919, S2 1.0909, S3 1.0884, S4 1.0856 (H1)

Comment: The market still favors additional rallies for EUR/USD especially the mentioned above fundamentals on U.S Dollar. long positions above hourly pivot (1.0910) stretches bullish waves seeing R2&R3 as target. A penetration for S1 level will increase selloffs and wash towards S2 as first station, and S3 as second destination. Keep an eye on U.S Index levels.

For more in depth Research & Analysis please visit FxGrow.

Note: This analysis is intended to provide general information and does not constitute the provision of INVESTMENT ADVICE. Investors should, before acting on this information, consider the appropriateness of this information having regard to their personal objectives, financial situation or needs. We recommend investors obtain investment advice specific to their situation before making any financial investment decision.

[FxGrow_Support]

FxGrow Daily Technical Analysis – 15th May, 2017
By FxGrow Research & Analysis Team

Gold Pushes Higher As June Fed Odds Drops Lower

Gold extended bullish momentum and added +$1.04 since Friday’s high with 1232.81 for Monday’s trading session. U.S Retail Sales and CPI, although was positive compared to previous sessions but not up to forecasts, lowered June Fed hike odds by 10% after being estimated at 84% which pushed XAUUSD higher.

The ascending events of North Korean launching a missile-test has contributed to gold bullish forces as the yellow metal tends to hike when political tension tightens and Trump’s continuous decisions also pressured U.S Index for lower levels.

The United Nations Security Council is due to meet on Tuesday to discuss the missile launch and gold levels will await the results with possibility of additional rallies depending how the events accelerate.

U.S economic data shows absence today which leave gold to trade technically.

Technical Overview:

Trend: Bearish Sideways

Pivot: 1226.50

Resistance levels: R1 1233.20, R2 1236.89, R3 1241.17

Support levels: S1 1223.38, S2 1220.49, S3 1216

Comment: Gold is currently bullish on H1 supported by rising trend but remains bearish as general trend. Only a close above R3 level signals a trend reversal.

Long positions above pivot 1226.50 with targets at R1&R2. Long positions below pivot 1226.50, look further for S1&S2 as target.

For more in depth Research & Analysis please visit FxGrow.

Note: This analysis is intended to provide general information and does not constitute the provision of INVESTMENT ADVICE. Investors should, before acting on this information, consider the appropriateness of this information having regard to their personal objectives, financial situation or needs. We recommend investors obtain investment advice specific to their situation before making any financial investment decision.