FxWirePro: Gold Weekly Outlook

Ichimoku analysis (Weekly chart)

Tenken-Sen- $1932

Kijun-Sen- $1868

Gold is trading in a narrow range between $1872 and $1933 for the past two weeks. The US dollar gained sharply as hopes of US fiscal stimulus fades and the rise in coronavirus cases.  DXY climbed sharply more than 75 pips on better than expected US economic data. Any violation above 94 confirms bullish continuation.

Economic data:

The number of people who filed for unemployment benefits rose to 898000 vs forecast of 81000. The latest Philly Fed manufacturing index came at 32.3, rose from 17.3 last month. The US retail sales raised a 1.9% m/m compared to an estimate of 0.7%.

Technical:

In the Weekly chart, Gold is facing strong support near Kijun-Sen at $1868. Any break below will take the pair till $1848/$1830. On the higher side, near term intraday resistance is around $1910 and any indicative break above that level will take the pair till $1933/$1950.

It is good to buy on dips around $1895-96 with SL around $1880 for the TP of $1920/$1933.