Gold Falls Noticeably Ahead of U.S. Empire State Manufacturing Index Data, $12+ Volatility Likely; Feb 16, 2021
U.S. Empire State Manufacturing Index
The U.S. will release key economic indicator at 1330 GMT/1900 IST. 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 200 manufacturers in New York State which asks respondents to rate the relative level of general business conditions. Although it is presented as low impact data, it may give high volatility keeping mind the expected growth forecast. If the actual data comes higher than forecasted, it will be positive for U.S. dollar. It is important to note here that since last 4 times, U.S. has released this data with negative numbers. Let’s wait for few hours to predict the market expectations for the NY State.
Let’s see how Gold has reacted during the previous data release:
XAU/USD (Gold): Gold moves in stiff boundaries and remains well supported below $1,830 mark. The pair made intraday high at $1,826 and low at $1,817 mark. On H1 chart, triple EMA fails to give successful crossover for the bullish trend and currently signaling down trend for the time being. While on a Day chart, triple EMA has confirmed bearish trend too. A sustained close above $1,828 or consistent close below $1,817 on H1 chart will provide further directions to the parity.
Key Resistances: $1,827, $1,832, $1,840, $1,848, $1,854
Key Supports: $1,815, $1,807, $1,798, $1,785, $1,776
Take a look and do trade wisely!