The new trading week kicks-off with the German IFO report. Economists predict a small improvement across all three sub-categories. Gold has moved higher as fears over the new coronavirus pushed traders into safe-haven assets. The fragile economy cannot afford disruptions caused by this new virus, but China already banned tours through affected provinces. How will this previous metal react to today’s economic data? Subscribe to the PaxForex Daily Fundamental Analysis and grow your balance trade-by-trade.
New home sales out of the US, together with a regional manufacturing report, are also expected to have an impact on price action. A sell-off in equity markets, combined with a weaker US Dollar, will further enhance the upside momentum of Gold. Will bulls be able to push through the 2020-high above $1,600 and add to gains, or are bears preparing a push to the downside? Today’s fundamental analysis will take a look at the upside potential as well as the downside risk in this currency pair.
Here are the key factors to keep in mind today for Gold trades:
- German IFO: The German IFO Business Climate Index for January is predicted at 97.0. Forex traders can compare this to the German IFO Business Climate Index for December, which was reported at 96.3. The German IFO Current Assessment Index for January is predicted at 99.1. Forex traders can compare this to the German IFO Current Assessment Index for December, which was reported at 98.8. The German IFO Expectations Index for January is predicted at 94.8. Forex traders can compare this to the German IFO Expectations Index for December, which was reported at 93.8.
- UK BBA Loans for House Purchase: UK BBA Loans for House Purchases for December are predicted at 44,000. Forex traders can compare this to UK BBA Loans for House Purchases for November, which were reported at 43,715.
- US New Home Sales: US New Home Sales for December are predicted to increase by 1.6% monthly to 731K new homes. Forex traders can compare this to US New Home Sales for November, which increased by 1.3% monthly to 719K new homes.
- US Dallas Fed Manufacturing Activity Index: The US Dallas Fed Manufacturing Activity Index for January is predicted at -1.6. Forex traders can compare this to the US Dallas Fed Manufacturing Activity Index for December, which was reported at -3.2.
Should price action for Gold remain inside the or breakout above the 1,556.65 to 1,585.90 zone the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1,577.00
- Take Profit Zone: 1,683.20 – 1,696.40
- Stop Loss Level: 1,546.00
Should price action for Gold breakdown below 1,556.65 the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1,546.00
- Take Profit Zone: 1,502.50 – 1,519.20
- Stop Loss Level: 1,556.65
Open your PaxForex Trading Account now and add this currency pair to your forex portfolio. Do you hedge your forex trading account properly and protect it from downside risk? Find out how to properly secure your forex investment at PaxForex where you can grow your portfolio trade-by-trade!
We are one of the fastest growing Forex Brokers in the Market. Trade with PaxForex to get the full Forex Trading experience which is based on...
- The Reliability on all Assets in the Market
- Trusted Worldwide for over a Decade
- Live Multi-Lingual Online Support 24/5
