Be Watchful Ahead of U.S. Existing Home Sales Data, High Volatility Expected; Oct 22, 2020
U.S. Existing Home Sales
U.S. will publish existing home sales data around 1400 GMT/1930 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. If actual data is higher than expected, it will be good for U.S. dollar.
Let’s see how Gold has reacted during the previous data release:
Sept 22: Negative Data
Aug 21: Positive Data
XAU/USD (Gold): Gold failed to break key resistance at $1,932 mark and currently hovers around $1,915 mark. Today pair made intraday high at $1,925 and low at $1,910 mark. A sustained close above $1,924 requires for the upside rally. On the other side, consistent close below $1,908 will check key supports as well. Key support levels are seen around $1,902, $1,891, $1,882, $1,876, $1,864, $1,857, $$1,849, $1,840, $1,822, $1,809 and $1,787 mark respectively. Key resistances are seen at $1,932, $1,940, $1,947, $1,957 and $1,972 marks respectively.
Take a look and do trade wisely!