Gold Price Prediction – Prices Rebound Forming Outside Reversal Day
Gold prices moved higher forming an outside day following Tuesday’s selloff. The move in gold prices came as the dollar moved lower and took a respite from its recent rise. U.S. yields also moved higher on Wednesday following a robust ADP private payroll report that came out in line with expectations.
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Technical analysis
Gold prices whipsawed and formed an outside day which is often seen as a reversal pattern. The lower low the higher high and the higher close is a positive seen for the yellow metal. Support is seen near the June lows at 1,670. Resistance is seen near the 10-day moving average at 1,724. Target resistance is now seen near the 50-day moving average at 1,775. Short-term momentum remains negative as the fast stochastic continues to trend lower. Medium-term momentum has turned negative as the MACD (moving average convergence divergence) index generated a crossover sell signal. This occurs as the MACD line (the 12-day moving average minus the 26-day moving average) crosses below the MACD signal line. The MACD histogram is printing negative territory with a declining trajectory which points to lower prices.
ADP Private Payrolls Rise in Line with Expectations
According to a report Wednesday from payroll processing firm ADP, private payrolls surged in March, rising at the fastest pace since September. Companies added 517,000 workers for the month, in line with estimates. The March total represented the most significant hiring burst since September’s 821,000. The strongest job gains came from the leisure and hospitality sector, which took the biggest hit due to the government-imposed shutdowns associated with the Covid-19 pandemic. The sector added 169,000 new workers, part of a 437,000 increase overall in services-related jobs.
This article was originally posted on FX Empire
