Industry news:
G20 key Quotes:
"The outcome was largely in line with market expectations and our own baseline. The Huawei news suggests that Trump may be more willing to cut a deal."
"It reduces the tail risk of tariffs increasing on the remaining $300bn of Chinese exports into the US. However, there are few details currently available about what equipment US companies can sell. There is also no timeframe set for further talks."
"Rates are pricing in 33bp of cuts in July, which implies that the market is still priced for continued deterioration in the economic data. We expect the subdued USD tone to persist as the combination of a dovish Fed and risk sentiment should extend gains elsewhere. The caveat is the extent to which key data this week impacts Fed pricing for July."
Trading recommendation:
Gold did perfect test and reject of the hourly exponential moving average (20) in a downward trending channel, which is strong sign of further weakness on the Gold. The levels at $1393-$1.400 looks very attractive for new selling wave and my advice is to watch for selling opportunities.
Red rectangle – Hourly EMA and previous swing low ($1.395) resistance
Orange rectangle- Support 1 ($1.346)
Red line – 20 EMA
MACD oscillator is showing the new momentum low in the background and that Gold is trading in the negative territory, which confirms my bearish view. RSI oscillator is showing flip down and potential new wave down is coming. The Stochastic oscillator is showing overbought condition, which is another bear sign. On the of all of these, there is the breakout of the HSS pattern, which is now strong signal for further downside. As long as the Gold is trading below $1.425, I would watch for selling opportunities on the rallies.
