• Gold recently tested the $1800 price twice last week, without being able to reach it or break it. The daily chart shows a reversal of the bearish trend confirmed by retesting of the $1676 price level with a double bottom and then making a breakout and trading above the $1756 level. Gold is trapped between two key averages on the 1D chart, above the MA50 and below the MA200. A break below the $1755 support level may push the price further down but as long as the price trades above this support line, the reversal of the bearish trend still stands.
• With nothing scheduled in the euro docket on Wednesday, this should leave all the attention to the publication of the US Crude Oil Inventories followed by the all much important US FOMC Statement, US Federal Funds Rate and the FOMC Press Conference that follows.
• At 14:00 (GMT) ECB’s President Christine Lagarde is due to speak at the online Global Leaders Series of the Aspen Security Forum. Her comments may provide more insight in the European Economy’s direction amid the corona virus crisis.
• The German government raised its growth forecast for Europe's largest economy to 3.5% from a previous estimate of 3% as it expects household spending to support the recovery once COVID-19 restrictions are lifted. This is potentially going to positively impact the EURO and EU Indices in the short term. (Reuter’s)
European indices yesterday
• DAX: -0.31%
• EURO: -0.22%
• MIB: -0.17%
• CAC: -0.03%