Key Indicator and Event to Keep in Mind Before U.S. Session; Nov 29, 2021
U.S. Pending Home Sales Data
Today U.S. has scheduled to release Pending Home Sales data at 1500 GMT/2030 IST and thereafter U.S. Fed Chair Powell’s speech at 2005 GMT/0130 IST. Powell is due to deliver opening remarks at a webinar hosted by the Federal Reserve Bank of New York. As head of the central bank, which controls short term interest rates, he has more influence over the nation’s currency value than any other person. Traders scrutinize his public engagements as they are often used to drop subtle clues regarding future monetary policy and brings volatility to the FX markets.
Pending Home Sale is 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.
Let’s see how Gold has reacted during the previous data release:
- Gold trades marginally higher on Monday and remains well supported above $1,790 mark.
- Today pair made intraday high at $1,799 and low at $1,769 mark.
- A day chart and H1 chart with triple EMA suggest bullish trend for the time being.
- A sustained close above $1,802 on H1 chart requires for the upside rally.
- Alternatively, a consistent close below $1,782 on H1 chart will check further supports.
Take a look and do trade wisely!