Key U.S. Fundamentals to Look at Ahead of U.S. Opening, Gold Likely to give $15+ Volatility; March 24, 2021

U.S. Key Fundamentals to Look at Ahead of U.S. Opening

Today’s U.S. session will be hectic as U.S. will release Durable – Core Durable goods orders data, Manufacturing – Services PMI Data and Fed Chair Powell’s Testimony Day 02.

U.S. Durable & Core Durable Goods Orders Results (1230 GMT/1800 IST):

It’s a leading indicator of production – rising purchase orders signal that manufacturers will increase activity as they work to fill the orders. Durable goods are defined as hard products having a life expectancy of more than 3 years, such as automobiles, computers, appliances, and airplanes. The Core data is therefore thought to be a better gauge of purchase order trend. Orders for aircraft are volatile and can severely distort the underlying trend.

Let’s see the past movement of Gold during the data release:

Feb 25:

Jan 27:

U.S. Manufacturing & Services PMI Results (1345 GMT/1915 IST):

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. Manufacturing PMI 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 while Services PMI data will generated by a survey of about 400 purchasing managers which asks respondents to rate the relative level of business conditions including employment, production, new orders, prices, supplier deliveries, and inventories.

Let’s see the past movement of Gold during the data release:

Feb 19:

Jan 22:

Technical View:

XAU/USD (Gold): The Gold exhibits range bound movement and hovers around $1,730 mark. The pair made intraday high at $1,734 mark and low at $1,723 mark. A day chart and H1 chart with triple EMA confirm the bearish trend for the time being. The pair faces key hurdle at $1,742 to $1,722 mark. A sustained close above $1,737 on H1 chart requires for the upside rally. In addition, a sustained close above $1,745 on a day will check further resistances too. Alternatively, reversal from key resistance will drag the parity down back below $1,722 mark.

Key Resistances: $1,737, $1,742, $1,748, $1,754, $1,762, $1,767

Key Supports: $1,726, $1,722, $1,715, $1,708, $1,702, $1,694

Take a look and do trade wisely!
Good Luck