Morning Insights 28th May

Simon Alagbe

Analyst

Instrument: GOLD

Intraday: Bullish

Technical Analysis

Preference: Buy position is envisaged if price trades above 1721.50 with take profit at 1727.00.

Alternative scenario: Sell position is envisaged if price trades below 1713.45 with take profit at 1702.45

Fundamentals:

Prelim GDP q/q   (USD)  1:30pm    

Comment: Despite global optimism on economic recovery from COVID 19, tensions between the U.S and China escalates and outweighs sentiment. This also has pressured the dollar, and given the attractiveness of the safe-haven Gold, investors have hopped on to the bullish metal. This bullish move can only be invalidated if more positive news on the COVID vaccine comes out. However, for now, we envisage Gold to keep trading bullish.



Instrument: AUDUSD

Intraday: Bullish

Technical Analysis

Preference: Buy position is envisaged if price trades above 0.66213 with take profit at 0.66520.

Alternative scenario: Sell position is envisaged if price trades below 0.65975 with take profit at 0.65740.

Fundamentals:

Prelim GDP q/q   (USD)  1:30pm    

Comment: The US economy has been under intense pressure after tensions between the US and China escalated. This pushed the dollar downward and made AUDUSD bullish. This bullish move can only be invalidated if more positive news on the COVID vaccine comes out. However, the Aussie is envisaged to trade higher against the Greenback. 

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