Be Watchful Ahead of U.S. Session, High Volatility Likely; March 22, 2021

U.S. Existing Home Sales

Today’s U.S. session is busy as Fed Chair Powell and many other FOMC members are schedule to speak today. Among such important speeches from Central Bank governors, U.S. will release Existing Home Sales Data too. The release time will be 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 the actual data is higher than forecasted, it will be good for U.S. dollar.

Let’s see how Gold has reacted during the previous data release:

Feb 19:

Jan 22:

Technical View:

XAU/USD (Gold): The gold starts a new week on a lower note and touched $1,727 mark in European hours. The pair made intraday high at $1,747 and low at $1,727 mark. The day and H1 charts with triple EMA give bearish trend confirmation for the time being. A sustained close above $1,732 on H1 chart requires for the upside rally. Alternatively, a consistent close below $1,727 on H1 will test further supports too.

Key Resistances: $1,732, $1,737, $1,742, $1,747, $1,754, $1,762, $1,767

Key Supports: $1,722, $1,715, $1,708, $1,702, $1,694, $1,685, $1,676

Take a look and do trade wisely!
Good Luck