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XAUUSD 30-04-2018 Intra-day analysis.

USD GDP advances 2.3% in Q1 2018

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Daily Forex Market Preview, 30/04/2018

The U.S. dollar remained flat on Friday despite some bullish fundamentals. The U.S. preliminary GDP report beat forecasts to rise 2.3% on the quarter. Economists’ forecast a 2.0% increase during the quarter. Despite the beat on the forecasts, the quarterly GDP was slower than the 2.9% increase seen previously.

Data from the UK disappointed as the UK’s GDP was seen rising just 0.1% in the first three months of the year. The British pound extended losses on the news release.

Looking ahead, the markets get off a busy start. The European trading session will see the release of the German retail sales report. Economists forecast that retail sales rebounded in March, rising 0.8% on the month. This would potentially offset the 0.7% decline seen the month before. Germany’s preliminary inflation report is also due to be released, and the data is expected to show a 0.1% decline in consumer prices following a 0.4% increase.

The NY trading session will see the release of the core PCE price index data. The Fed’s preferred gauge of inflation is forecast to rise 0.2% on the month, rising at the same pace as the month before. Personal spending and income data is expected to rise 0.4%. The U.S. pending home sales report is forecast to rise at a slower pace of 0.6% on the month after a 3.1% increase seen the month before.

XAUUSD 30-04-2018 Intra-day analysis

XAUUSD (1321.59): Gold prices were seen establishing a bottom near the 1316 levels on Friday before price attempted to push higher. The breakout from the descending wedge pattern could trigger a short-term rally to the resistance level of 1325. However, further gains can be expected only on a strong breakout above this resistance level. In such an event, the upside target in gold prices could extend to the 1337 level where the previously breached support level could be tested for resistance. To the downside, a breakdown below the 1316 levels could potentially trigger a sell off to the 1300.00 round number support.

 

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