XAU/USD remains in positive territory for the day, but is trading within a narrow range near the lowest point of the week. Additionally, the pair is unable to break through $1,921.80, which represents a 38.2% retracement from its previous slide between $1,982.15 and $1,884.77.
From a technical standpoint, there is a bias towards downward movement; however, on the daily chart we can see that both the 20-day and 200-day Simple Moving Averages (SMAs) are providing support at around 1,915. Furthermore, technical indicators are showing lack of clear direction: The Momentum indicator is consolidating just above its 100 line and the Relative Strength Index (RSI) is hovering around 46.
From a technical standpoint, there is a bias towards downward movement; however, on the daily chart we can see that both the 20-day and 200-day Simple Moving Averages (SMAs) are providing support at around 1,915. Furthermore, technical indicators are showing lack of clear direction: The Momentum indicator is consolidating just above its 100 line and the Relative Strength Index (RSI) is hovering around 46.
Comment:
The August reading of the producer price index came in hotter than expected. It rose 0.7%, more than the 0.4% increase anticipated by economists polled by Dow Jones. However, excluding food and energy, core PPI increased 0.2%, in line with the estimate.
🔴 SL: 1930
🟢 TP1: 1920
🟢 TP2: 1915