With US markets at all-time highs, forex traders will start the new trading week with a light economic calendar. Trade concerns have eased slightly, but remain far from being resolved. This morning’s Singapore trade data showed an unexpected monthly contraction in non-oil exports which served as a reminder that global trade remains weak. Gold has ended its strong sell-off as bulls rushed back into this precious metal. How will price action develop during today’s session? Subscribe to the PaxForex Daily Fundamental Analysis and grow your balance trade-by-trade.
The bulk of economic data was released during the Asian trading session while a pair of ECB speeches are scheduled during the European trading session. Traders will get the US NAHB Housing Market Index, but the focus will remain on US-China trade developments. Markets have moved on any announcement of progress, even if no real progress has been achieved. Will Gold continue to rally or are bears going to reverse the current move higher? 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:
- Japanese Housing Loans: Japanese Housing Loans for the third-quarter increased by 2.9% annualized. Forex traders can compare this to Japanese Housing Loans for the second-quarter which increased by 2.2% annualized.
- UK Rightmove House Prices: UK Rightmove House Prices for November decreased by 1.3% monthly and increased by 0.3% annualized. Forex traders can compare this to UK Rightmove House Prices for October which increased by 0.6% monthly and which decreased by 0.2% annualized.
- Singapore Trade Balance: The Singapore Trade Balance for October was reported at $3.780B. Forex traders can compare this to the Singapore Balance for September which was reported at $3.830B. Non-Oil Exports for October decreased by 2.9% monthly and by 12.3% annualized. Economists predicted an increase of 1.4% and a decrease of 10.4%. Forex traders can compare this to Non-Oil Exports for September which decreased by 3.3% monthly and by 8.1% annualized.
- US NAHB Housing Market Index: The US NAHB Housing Market Index for November is predicted at 71. Forex traders can compare this to the US NAHB Housing Market Index for October which was reported at 71.
Should price action for Gold remain inside the or breakout above the 1,462.20 to 1,474.20 zone the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1,465.00
- Take Profit Zone: 1,519.20 – 1,535.40
- Stop Loss Level: 1,456.00
Should price action for Gold breakdown below 1,462.10 the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1,456.00
- Take Profit Zone: 1,411.00 – 1,430.00
- Stop Loss Level: 1,462.20
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