Here are the key factors to keep in mind today for Gold trades:
- New Zealand Performance of Services Index: The New Zealand Performance of Services Index for July was reported at 55.1. Forex traders can compare this to the New Zealand Performance of Services Index for June which was reported at 52.7.
- New Zealand Food Prices: New Zealand Food Prices for July increased by 0.7% monthly. Forex traders can compare this to New Zealand Food Prices for June which increased by 0.5% monthly.
- Turkish Contagion Risk: Forex traders should watch out for contagion risk out of Turkey. The Lira has plunged to record lows against the US Dollar and as the situation unfolds, other parts of the forex market will be affected. The Euro has dropped to multi-month lows amid fears of Eurozone banks exposure to Turkey. Since there appears no easy solution to the current problems and with Turkish President Erdogan stating that his country is now fighting an economic war, forex traders should expect more fallout in the coming weeks and months.
Should price action for Gold remain inside the or breakout above the 1,200.00 to 1,216.80 zone the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1,205.50
- Take Profit Zone: 1,260.10 – 1,265.60
- Stop Loss Level: 1,180.40
Should price action for Gold breakdown below 1,200.00 the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1,197.10
- Take Profit Zone: 1,170.85 – 1,180.40
- Stop Loss Level: 1,204.15
Open your PaxForex Trading Account now and add this currency pair to your forex portfolio.