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Fiscalstimulus

Gold bears should await $1,721 break for fresh entriesAlthough gold fades bounce off six-week-old horizontal support surrounding $1,724, a downward sloping trend line from August 26, near $1,721, becomes a short-term key level for the bears to watch amid weak RSI. Should the quote drops below $1,721, the $1,700 threshold may become an intermediate halt during the fall towards the yearly low. It’s worth noting that the US policymakers are bracing for the infrastructure bill passage, as well as debt ceiling extension, after successfully avoiding a government shutdown. Should they win, the market sentiment will improve, underpinning the gold’s much-needed corrective pullback. During the commodity’s bounce off multi-day-old support, 50-SMA could challenge the bulls at around $1,753. However, a monthly resistance line surrounding $1,768 will be a tough nut to crack for the gold bulls. In a case where the quote stays firmer past $1,768, the metal confirms a bullish chart pattern called falling wedge, which in turn favors the run-up towards cross the $1,834 key hurdle. Before that, the $1,800 round figure may entertain the buyers.
OANDA:XAUUSD
by MTradingGlobal
EURUSD stays offered ahead of Biden’s infrastructure spendingWith the bond rout at its peak since early 2020, EURUSD drops to the lowest in five months as traders await US President Joe Biden’s infrastructure bill details. However, a sustained downside break of a three-month-old falling trend line favors the pair bears. As a result, a horizontal area established from September 25, 2020, around 1.1610-1600, gains market attention. Following that, a 50% Fibonacci retracement level of 1.1530 and June 2020 peak surrounding 1.1420 should lure the EURUSD sellers. It should, however, be noted that Biden’s ability to please investors can trigger the much-awaited corrective pullback beyond the support-turned-resistance near 1.1740. Even so, EURUSD bulls are less likely to get convinced until the quote rallies beyond the 200-day SMA level of 1.1865. Overall, EURUSD has some room to the south but the key event may disappoint the bears and hence traders should be cautious ahead of the 20:20 GMT speech.
Short
by MTradingGlobal
EURUSD eases below key hurdle ahead of crucial US testimonyEURUSD fades bounce off 61.8% Fibonacci retracement of November-January upside as traders eye Congressional testimony of Federal Reserve Chairman Jerome Powell and US Treasury Secretary Janet Yellen. Given the sluggish MACD and the recent US dollar demand, the bears are likely to retake the controls should policymakers hesitate in accepting fears of reflation. In that case, the aforementioned key Fibonacci retracement and 200-day SMA, respectively around 1.1885 and 1.1850, will be in the spotlight before the monthly bottom surrounding 1.1835. Meanwhile, a surprising optimism can trigger the quote’s recovery moves targeting a 50% Fibonacci retracement level of 1.1975. Though, any further upside will be tamed by a confluence of 21-day SMA and a three-week-old horizontal area near 1.1990. Also likely to tame the EURUSD bulls is the 1.2000 round-figure and the mid-February lows near 1.2025. Overall, EURUSD looks set for further losses but the key SMA can test the south run.
Short
by MTradingGlobal
GBPUSD teases sellers ahead of UK budgetIn addition to a sustained downside break of the one-month-old support line, portrayed last Friday, the weekly falling trend line also suggests a bearish bias for the GBPUSD prices ahead of the key UK annual budget announcement, up for publishing around 12:30 GMT. It should, however, be noted that British Chancellor Rishi Sunak is up for releasing the heavy government help while targeting speedy recovery from the pandemic. Hence, a cautious selling could be eyed unless the quote stays below the previous support line, now resistance, near 1.4095. For an immediate basis, 1.3970 and the 1.4000 threshold can probe the GBPUSD bulls. Alternatively, a downward sloping trend line from February 22 around 1.3840 and a 200-bar SMA level of 1.3800 could lure the cable sellers should Sunak disappoints markets by announcing plans of tax hikes. Though, the bulls are less likely to lose hopes unless witnessing a daily close below February’s low near 1.3560.
Short
by MTradingGlobal