Be Cautious Ahead of U.S. Session, Markets Eye Key U.S. Fundamentals, $14+ Volatility Likely in Gold; Feb 18, 2021
U.S. Philly Fed manufacturing Index Data
Today U.S. will release multiple economic indicators at the same time. Along with Philly Fed manufacturing Index, U.S. will publish Building Permits, Housing Starts, Import Prices and Unemployment Claims weekly data. In case of mixed data release, U.S. dollar may give volatility against major peers.
Here I am briefing you out regarding Philly Fed Manufacturing Index data. It’s a leading indicator of economic health – businesses react quickly to market conditions, and changes in their sentiment can be an early signal of future economic activity such as spending, hiring, and investment. This data is derived via a survey of about 250 manufacturers in the Philadelphia Federal Reserve district which asks respondents to rate the relative level of general business conditions.
Let’s see how Gold has reacted during the previous data release:
XAU/USD (Gold): Gold recovers slightly from previous losses and remains well supported above $1,780 mark. The pair made intraday high at $1,789 and low at $1,775 mark. The Day and H1 charts suggest the bearish trend for the time being but current upside movement signifies short term trend reversal only. A sustained close above $1,792 requires for the upside rally. Alternatively, reversal from here will drag the parity down below $1,772 mark.
Key Resistances: $1,802, $1,808, $1,817, $1,822, $1,828
Key Supports: $1,772, $1,764, $1,758, $1,752, $1,748
Take a look and do trade wisely!