Gold Moves in Rigid Boundaries Ahead of U.S.’s Manufacturing & Services PMI Data, $12+ Volatility Likely; Feb 19, 2021
U.S. Manufacturing PMI & Services PMI Data
Today U.S. has scheduled to release PMI data including manufacturing & Services PMI. It’s a leading indicator of economic health – businesses react quickly to market conditions, and their purchasing managers hold perhaps the most current and relevant insight into the company’s view of the economy. This data is derived via a survey of about 800 purchasing managers which asks respondents to rate the relative level of business conditions including employment, production, new orders, prices, supplier deliveries, and inventories. If the actual data comes above 50.0, it indicates industry expansion. Alternatively below 50.0 indicates contraction of the industry.
Let’s see how Gold has reacted during the previous data release:
XAU/USD (Gold): Gold trades noticeably lower on Friday and stabilizes around $1,770 mark. The pair made intraday high at $1,777 mark while low at $1,760 mark. Triple EMA suggests bearish trend on a Day as well as H1 chart. The expected range for the parity will be $1,778 to $1,767 mark. A sustained close of either side on H1 chart will provide further direction to the parity.
Key Resistances: $1,778, $1,784, $1,792, $1,802, $1,808
Key Supports: $1,758, $1,752, $1,748, $1,740, $1,732
Take a look and do trade wisely!