• Gold awaits fresh clues to extend the latest declines below 10-DMA.
  • The US President Trump’s tweets supporting Fed rate cut confront Rosengren’s comments.
  • US-China trade stalemate continues.

With the lack of fresh directives, Gold remains below $1,500 during the Asian session on Tuesday.

The yellow metal previously slipped under 10-day simple moving average (DMA) as the US President Donald Trump’s rate cut demands were tamed by the Federal Reserve Bank of Boston’s President Eric Rosengren. Upbeat expectations surrounding the US-China trade deal, mainly due to the US favor for Huawei, also added to market’s recently risk recovery.

With this, equities and bond yields recover latest losses while safe-havens like the Japanese Yen (JPY) and Gold had to suffer.

Recently, the US President has been offering incentives to China ahead of their September trade talks. Elsewhere, global central banks keep their dovish outlook intact but wait for this week’s Jackson Hole Symposium event to announce the same.

Other than that, political tension surrounding the Middle East and the UK can keep offering intermediate trading opportunities amid a light economic calendar.

Technical Analysis

While 10-DMA level of $1,506 acts as immediate resistance, $1,510 and $1,528 can act as buffers before fueling the quote towards $1,535. Meanwhile, a downside break of $1,480 can recall July month high surrounding $1,452.

The price of oil is resting up in the high end of the 55 handle in WTI while the price finally got above the 20 daily moving average and then pierced the 50-DMA into the 56 handle overnight. Bulls are back in control and there is room for an advance to the 58 handle to meet trend line resistance from here while on the downside, bears can target a drop to the 52 handle and the 61.8% Fibo at 51.70 on the wide.

  • USD/IDR seesaws near 38.2% Fibonacci retracement.
  • 50-DMA and 23.6% Fibonacci retracement offers strong downside support.

With its sustained trading beyond the key support confluence, the USD/IDR pair flashes 14,266 as a quote during early Tuesday.

Despite repeated failures to cross 38.2% Fibonacci retracement of 2018 swing high to 2019 swing low, prices remain firm unless closing below the 14,150/38 support confluence including 50-day simple moving average (DMA) and 23.6% Fibonacci retracement.

As a result, buyers can still target 38.2% Fibonacci retracement of 14,384, a break of which will trigger a fresh upside to 14,500 round-figure.

However, a downward sloping trend-line since November 2018 and 50% Fibonacci retracement, near 14,570 and 14,582 respectively, will question buyers.

On the contrary, pair’s dip beneath 14,138 will target three-month-old support-line at 14,000.

USD/IDR daily chart

Trend: Bullish