Be Watchful Ahead of U.S. Session, Let’s Take a Look on U.S. Key Fundamentals; May 27, 2021
U.S. Prelim GDP q/q
Today’s U.S. session will be important as various economic indicators are scheduled to release at 1230 GMT/1800 IST. They are U.S. Prelim GDP q/q, Unemployment claims weekly, U.S. Durable Goods orders and U.S. Core Durable Goods Orders. Later on at 1400 GMT/1930 IST, U.S. has scheduled to release Pending Home Sales data too. All the above indicators are likely to bring high volatility in to the U.S. dollar and thus on Gold too.
Prelim GDP q/q (1230 GMT/1800 IST):
It’s the broadest measure of economic activity and the primary gauge of the economy’s health. The ‘Previous’ listed is the ‘Actual’ from the Advance release. There are 3 versions of GDP released a month apart – Advance, Preliminary, and Final. The Advance release is the earliest and thus tends to have the most impact.
Pending Home Sales:
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.
XAU/USD (Gold): Gold moves in stiff boundaries ahead of U.S. key economic indicators. The pair made intraday high at $1,903 and low at $1,892 mark. A day as well as H1 chart with triple EMA suggests bullish trend for the time being. A sustained close above $1,902 on H1 chart requires for the upside rally. Alternatively, reversal from here will drag the parity down below $1,892 mark.
Key Resistances: $1,902, $1,909, $1,916, $1,925, $1,930
Key Supports: $1,892, $1,887, $1,881, $1,876, $1,870
Take a look and do trade wisely!