Be Watchful Ahead of U.S. Session, Gold May Give $15+ Volatility During U.S. Fundamental News; March 16, 2021
U.S. Retail Sales & Core Retail Sales
Today’s U.S. session will be important. Let’s start with U.S. Retail Sales data first. U.S. will release retail and core retail sales data at 1230 GMT/1800 IST. This is the earliest and broadest look at vital consumer spending data. It’s the primary gauge of consumer spending, which accounts for the majority of overall economic activity. Automobile sales account for about 20% of Retail Sales, but they tend to be very volatile and distort the underlying trend. The Core data is therefore thought to be a better gauge of spending trends. If the actual reading comes higher than expected, it will be beneficial to U.S. dollar.
Let’s see how Gold has reacted during the previous data release:
XAU/USD (Gold): Gold remains noticeably volatile since early Asian hours. The pair made intraday high at $1,737 and low at $1,726 mark. Here a day chart with triple EMA is bearish for the long run while H1 chart signals the bullish trend for the short run. A sustained close above $1,736 on H1 chart requires for the upside rally. Alternatively, reversal from here will drag the parity down below $1,720 mark.
Key Resistances: $1,740, $1,748, $1,754, $1,762, $1,767
Key Supports: $1,722, $1,715, $1,708, $1,702, $1.691
Take a look and do trade wisely!