Key Highlights
- Gold price started a strong recovery from the $1,450 support against the US Dollar.
- EUR/USD and GBP/USD rallied recently above 1.1080 and 1.3000 respectively.
- The US ADP Employment increased 67K in Nov 2019, less than the market forecast of 140K.
- The Euro Zone GDP could grow 1.2% in Q3 2019 (YoY).
Gold Price Technical Analysis
This past week, gold price formed a strong support base near the $1,450 level against the US Dollar. As a result, the price started a strong rise and broke a few hurdles near $1,465 and $1,475.
The 4-hours chart of XAU/USD indicates that the price rallied nicely after it broke the $1,465 resistance area and the 100 simple moving average (4-hours, red).
Moreover, the price surpassed a crucial bearish trend line with resistance near $1,458 to start the recent rally. Finally, the price spiked above $1,480 and tested the main $1,485 resistance area.
The $1,485 area holds a lot of importance since it was the last breakdown zone. A successful daily close above the $1,485 resistance could start another rally. The next major resistance is near the $1,500 level.
Conversely, the price could struggle to settle above $1,485. In the mentioned case, the price is likely to trim gains and revisit the $1,465 support area.
Fundamentally, the US ADP Employment Change figure for Nov 2019 was released by the Automatic Data Processing, Inc. The market was looking for an increase of 140K in Nov 2019.
However, the result was well below the market forecast, as the US ADP Employment increased 67K. Besides, the last reading was revised down from 125K to 121K.
Commenting on the same, the vice president and co-head of the ADP Research Institute, Ahu Yildirmaz, stated:
In November, the labor market showed signs of slowing. The goods producers still struggled; whereas, the service providers remained in positive territory driven by healthcare and professional services.
Overall, the US Dollar declined across the board and pairs, including EUR/USD and GBP/USD rallied above 1.1080 and 1.3000 respectively.
Economic Releases to Watch Today
- Euro Zone Gross Domestic Product Q3 2019 (QoQ) – Forecast 0.2%, versus 0.2% previous.
- Euro Zone Gross Domestic Product Q3 2019 (YoY) – Forecast 1.2%, versus 1.2% previous.
- US Initial Jobless Claims – Forecast 215K, versus 213K previous.
