Source: PaxForex Premium Analytics Portal, Fundamental Insight
The Japanese Trade Balance for June was reported at -¥268.8B. Economists predicted a figure of -¥35.8B. Forex traders can compare this to the Trade Balance for May, reported at -¥838.2B. Exports for June decreased by 26.2% annualized and Imports decreased by 14.4% annualized. Economists predicted a decrease of 24.9% and 16.8% annualized. Forex traders can compare this Exports for May, which decreased by 28.3% annualized and to Imports, which decreased by 26.2% annualized.
The Chinese 1-Year Loan Prime Rate for July was reported at 3.85%, and the Chinese 5-Year Loan Prime Rate was reported at 4.65%. Economists predicted a figure of 3.85% and 4.65%. Forex traders can compare this to the Chinese 1-Year Loan Prime Rate for June, reported at 3.85%, and to the Chinese 5-Year Loan Prime Rate, reported at 4.65%.
The forecast for the XAU/USD remains bullish with the global Covid-19 pandemic limiting economic output. Today’s Japanese export data disappointed, suggesting more global weakness ahead. Gold is supported by the ascending Tenkan-sen and Kijun-sen, while the Ichimoku Kinko Hyo Cloud is sloping higher. Price action is also supported by the psychological 1,800 level. Will bulls continue to elevate this precious metal? Subscribe to the PaxForex Daily Fundamental Analysis and earn over 5,000 pips per month.
Should price action for XAU/USD remain inside the or breakout above the 1,795.00 to 1,814.65 zone the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1,809.00
- Take Profit Zone: 1,743.00 – 1,754.00
- Stop Loss Level: 1,774.50
Should price action for XAU/USD breakdown below 1,795.00 the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1,774.50
- Take Profit Zone: 1,734.00 – 1,746.00
- Stop Loss Level: 1,795.00
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