Fed Chair`s Powell speech in front of the Senate during the previous week had an impact on the USD to gain in strength. He provided an overview on various topics, but the most important ones are related to the current state of the US economy and future monetary moves by the FOMC. Based on his testimony, the US economy continues to be strong, but the inflation continues to be persistent, in which sense, it could be expected two more rate hikes as of the end of this year. USD gained, while Gold lost some of its strength, considering its negative correlation. The price of Gold dropped from level of $1.967 down to $1.910.
RSI reached level of 38 during the week, but it still did not manage to reach a clear oversold side. This is indication that further pressures to the downside might continue in the coming period. Moving average of 50 days started its convergence toward the MA200 counterpart, but there is still a distance between two lines, in which sense, it is too early to note a potential cross.
Gold is currently testing a $1.920 support line. In case that it is broken to the downside, the next short term stop might stand at level around $1.880. Charts are not pointing that the price might reach the next support line at $1.850 in the coming week. On the opposite side, there is some probability of short reversal, but only to the level of $1.970. There is no indication that the price might go higher from this level.
Important news to watch during the week ahead are:
USD: Durable Goods Orders for May, CB Consumer Confidence, Fed Chair Powell Speech, GDP Growth Rate for Q1, PCE Price Index for May, Michigan Consumer Sentiment for June
RSI reached level of 38 during the week, but it still did not manage to reach a clear oversold side. This is indication that further pressures to the downside might continue in the coming period. Moving average of 50 days started its convergence toward the MA200 counterpart, but there is still a distance between two lines, in which sense, it is too early to note a potential cross.
Gold is currently testing a $1.920 support line. In case that it is broken to the downside, the next short term stop might stand at level around $1.880. Charts are not pointing that the price might reach the next support line at $1.850 in the coming week. On the opposite side, there is some probability of short reversal, but only to the level of $1.970. There is no indication that the price might go higher from this level.
Important news to watch during the week ahead are:
USD: Durable Goods Orders for May, CB Consumer Confidence, Fed Chair Powell Speech, GDP Growth Rate for Q1, PCE Price Index for May, Michigan Consumer Sentiment for June
