Be Cautious Ahead of U.S. Pending Home Sales Results, $10+ Volatility Likely in Gold; Feb 25, 2021
U.S. Pending Home Sales Data
Today the U.S. has scheduled to release Pending Home Sales data at 1500 GMT/2030 IST. It’s a leading indicator of economic health because the sale of a home triggers a wide-reaching ripple effect. For example, renovations are done by the new owners, a mortgage is sold by the financing bank, and brokers are paid to execute the transaction. This data is released about a week later than Existing Home Sales, but it’s more forward-looking as a contract is signed several weeks before the home is counted as sold.
Let’s see how Gold has reacted during the previous data release:
XAU/USD (Gold): Gold weakens drastically and touches $1,781 mark ahead of U.S. key economic indicators. The pair made intraday high at $1,805 mark and low at $1,781 mark. On H1 and a day chart, triple EMA confirms the bearish trend. Immediate support is seen at $1,780 and resistance level is seen at $1,796 mark. A sustained close of either side on H1 chart will decide the further direction of the parity.
Key Resistances: $1,808, $1,815, $1,822, $1,827, $1,832
Key Supports: $1,778, $1,772, $1,764, $1,758, $1,748
Take a look and do trade wisely!