Two trades to watch: Dax, Gold

Dax trades around all time high with EZ PPI up next and ahead of US non farm payrolls. Gold is extending mild gains for a third straight session ahead of the US jobs report.


DAX edges higher after record close on S&P500, EZ PPI up next 

European stocks are edging higher following a fresh record high hit by the S&P500 on Wall Street as investors focus on the US non farm payrolls. 

The European economic docket is quiet with just Eurozone producer price inflation data due to show a 1.2% MoM rise in May, up from 1% in April. 

The data comes as the ECB spars over where to go with monetary policy 

The US payrolls are expected to show 700k new jobs created and unemployment ticking lower to 5.6% 

Learn more about the Dax

Where next for the Dax? 

The Dax continues to hover around its all time high. It trades in a holding pattern, capped on the lower side by the 50 sma and on the upper side by 15800 the all time high.  

The RSI is neutral around 50 and flat as investors await fresh impetus from today’s payrolls. 

Any move higher needs to overcome resistance at 15750 in order to head towards 15800 and fresh all time highs. 

Meanwhile, a move lower would need to break below the 50 sma and horizontal support at 15445 in order to head towards 15250. A move below this level could see the sellers gain traction 


Gold edges higher ahead of NFP 

Gold continues to trade below 1800 after its worst monthly performance since November 2016. 

However, the roce is attempting a rebound, with three straight days of gains as concerns over the Delta variant of covid in Asian and UK support demand for the precious metal 

All eyes are on the US non farm payrolls particularly in light of the Fed’s recent hawkish shift which sent Gold tumbling. 

The US jobs report could provide fresh clues as to the timing of the Fed’s next move. 

What to expect from the NFP

Where next for Gold prices? 

Gold trades around 1780 in a familiar range after rebounded off 1751 its two month low earlier this week.  

The MACD’s receding bearish bias favours the buyers for now, however, all depends on the data. 

A strong NFP report could see gold quickly reverse recent gains and drop to 1751 support. However should the data disappoint then Gold could get a boost. Any continued recovery in Gold would need to retake the  100 day ma at 1790 ahead of horizontal resistance at 1800.

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