Looking ahead, highlights from macroeconomic calendar include EZ Sentiment Index and Fed’s Evans speech who is a Fed non-voter. Rise in US-China tensions (WeChat specifically) sends US dollar higher.
XAU/USD: a slight recovery
BUY TP1 1233.60; TP2 1238.40; SL 1226.
The market risk sentiment improved after the G20 meeting. While risk-sensitive currencies like AUD and NZD try to figure out whether to close gaps or not, the USD is strengthening versus gold.
Technical indicators on W1 are bullish. A candlestick with a long lower wick formed last week means that XAU/USD enjoyed buying interest.
On D1, 50-day MA went above the 100-day one. The pair’s actively testing the resistance line. Targets lie at 1233.68 (200-week MA) and 1238.44 (38.2% Fibo).
Gold is steadily plummeting for the third consecutive day. Where is the bottom? Let’s find out.
UK's Raab supports that virus restrictions are serious, proportionate
The dollar index was up late Tuesday afternoon in Asia, extending the 0.8% gain in the previous session, when COVID-19 fears and worries over the US Congress’ stimulus impasse drove a selloff across other assets.