US dollar declined to some extent, as the FOMC meeting minutes failed to live up to the expectation of the market.
Euro and the British pound surged higher and traded close to 1.1420 and 1.5450 respectively.
Japanese Merchandise Trade Balance Total released by the Ministry of Finance registered a lower than expected trade deficit with a reading of ¥-1,177.5B.
GOLD managed to pop higher and cleared an important resistance around the $1210 level.
FOMC Meeting MinutesThe FOMC meeting minutes turned out to be a negative event for the US dollar. The market was expecting the Federal Reserve to throw in some signs for a potential rate hike as soon as July this year. However, the outcome was a bit disappointing one, as the FOMC minutes show that the committee was coiled and favored a dovish tone than hawkish. This did not go down well with the US dollar buyers, as it was seen trading lower against the Euro and the British pound. Moreover, GOLD also moved higher and formed a nice bullish pattern on the 4-hour chart.However, the minutes mentioned that the “economic activity will expand at a moderate pace, with labor market indicators continuing to move toward levels the Committee judges consistent with its dual mandate”. They also stated that they would prefer a balanced approach towards their goal of maximum employment and inflation of 2 percent.Technical AnalysisGOLD recently traded lower and tested the $1200 support area where buyers managed to hold the downside in the near term. After the FOMC meeting minutes GOLD blasted higher and cleared the $1210 resistance area to challenge $1220. On the upside, an immediate resistance can be seen around the 23.6% fib retracement level of the last leg from the $1307 high to $1197 low. There is also a bearish trend line on the 4 hour chart, which might act as a hurdle if prices head higher from the current levels.On the downside, initial support is around the $1210 level, which might act as a pivot for GOLD moving ahead. Any further losses might take it back towards the last swing low of $1200.Japanese Merchandise Trade BalanceEarlier today, the Japanese Merchandise Trade Balance Total was released by the Ministry of Finance. The forecast was slated for a trade deficit of ¥-1,691.0B, but the outcome was on the higher side with a reading of ¥-1,177.5B.
However, the minutes mentioned that the “economic activity will expand at a moderate pace, with labor market indicators continuing to move toward levels the Committee judges consistent with its dual mandate”. They also stated that they would prefer a balanced approach towards their goal of maximum employment and inflation of 2 percent.Technical AnalysisGOLD recently traded lower and tested the $1200 support area where buyers managed to hold the downside in the near term. After the FOMC meeting minutes GOLD blasted higher and cleared the $1210 resistance area to challenge $1220. On the upside, an immediate resistance can be seen around the 23.6% fib retracement level of the last leg from the $1307 high to $1197 low. There is also a bearish trend line on the 4 hour chart, which might act as a hurdle if prices head higher from the current levels.
On the downside, initial support is around the $1210 level, which might act as a pivot for GOLD moving ahead. Any further losses might take it back towards the last swing low of $1200.Japanese Merchandise Trade BalanceEarlier today, the Japanese Merchandise Trade Balance Total was released by the Ministry of Finance. The forecast was slated for a trade deficit of ¥-1,691.0B, but the outcome was on the higher side with a reading of ¥-1,177.5B.
However, the minutes mentioned that the “economic activity will expand at a moderate pace, with labor market indicators continuing to move toward levels the Committee judges consistent with its dual mandate”. They also stated that they would prefer a balanced approach towards their goal of maximum employment and inflation of 2 percent.Technical AnalysisGOLD recently traded lower and tested the $1200 support area where buyers managed to hold the downside in the near term. After the FOMC meeting minutes GOLD blasted higher and cleared the $1210 resistance area to challenge $1220. On the upside, an immediate resistance can be seen around the 23.6% fib retracement level of the last leg from the $1307 high to $1197 low. There is also a bearish trend line on the 4 hour chart, which might act as a hurdle if prices head higher from the current levels.
On the downside, initial support is around the $1210 level, which might act as a pivot for GOLD moving ahead. Any further losses might take it back towards the last swing low of $1200.Japanese Merchandise Trade BalanceEarlier today, the Japanese Merchandise Trade Balance Total was released by the Ministry of Finance. The forecast was slated for a trade deficit of ¥-1,691.0B, but the outcome was on the higher side with a reading of ¥-1,177.5B.