XAUUSD 24-04-2018 Intra-day analysis.

Daily Forex Market Preview, 24/04/2018

The U.S. dollar was seen posting strong gains on the day across the board. The gains came amid data from the Eurozone showing that manufacturing PMI might have eased to 56.0 in April. Services PMI data was seen registering a print of 55.0, slightly higher from 54.8 that was forecast.

The U.S. 10-year yields were seen rising close to the 3% threshold at 2.973%. This was the highest level in the 10-year yields since January of 2014.

Canadian wholesale sales were seen falling 0.8% on the month following a revised 0.3%increase the month before.

Looking ahead, the economic calendar for the day will see the release of the German Ifo business climate data. Economists forecast that after the Ifo business climate fell sharply, it is expected to pick up modestly to 104.7.

Data from the UK will see the release of the public sector net borrowing data which is expected to expand to 1.1 billion GBP. The data from the U.S. is rather limited with the CB consumer confidence data that is expected to show a decline to 126.0 compared to 127.7 previously. New home sales are expected to rise to 625k, up from 618k that was registered in the month before.

XAUUSD 24-04-2018 Intra-day analysis

XAUUSD (1326.33): Gold prices fell sharply on the day as price action touched down to 1325.50 level of support. We see price action attempting to consolidate at the current levels. If a temporary bottom is formed at this level, we expect price action to retrace the losses to 1335 level which marks the 38.2% retracement level. Further gains could push gold prices to post a sharper correction toward 1344 which would mark the 61.8% Fib retracement from the highs of 1355.74 from 18 April and the current low at 1322.19 from earlier today.