Gold prices have climbed above $1,740.00 comfortably amid weakness in the DXY .
Lower US NFP estimates and the downbeat US ISM New Orders Index are responsible for the DXY’s fall.
The US ISM New Orders Index reflects the forward demand by the households.
Gold price ( XAU/USD ) is auctioning above the crucial support of $1,740.00. The precious metal has attracted bids as the US dollar index ( DXY ) has surrendered more than half of Wednesday’s gains. The DXY has tumbled on lower expectations for the US Nonfarm Payrolls (NFP) and the downbeat US ISM New Orders Index data released on Wednesday.

As per the market consensus, the US economy added 270k jobs in June, higher than the former release of 390k. However, the Unemployment Rate may remain stable at 3.6%. It is worth noting that lower additions to the labor market do not resemble a slowdown in the job market. The US employment level is optimal and has less room for more jobs. However, this might trim the confidence of the Federal Reserve (Fed) in announcing extreme restrictive policy measures.

The declining 200-period Simple Moving Average ( SMA ) at $1,787.75 adds to the downside filters. It is worth noting that the momentum oscillator, Stochastic Indicator is displaying overbought signals. Also, the Moving Average is portraying exhaustion in the pullback move.

Welcome back Traders, Investors, and Community!

Check the Links on BIO and If you LIKE this analysis, Please support our Idea by hitting the LIKE 👍 button

Traders, if you like this idea or have your own opinion about it, please write your own in the comment box . We will be glad for this.

Feel free to request any pair/instrument analysis or ask any questions in the comment section below.

Have a Good Day Trading !


Most Related Links :
honestcolumnist Governmental News Finance News

Source link

Back to top button