Forex Brokers Award 2020
Vote your favourite broker
Trade 100 Bonus - the best offer on Forex market

Concerns over global economic slowdown increase demand for defensive assets

Sep 24 2019, 04:17 PM (BDT) |

After the publication of weak economic data from Europe, gold maintains an upward vector amid growing fears of investors about a slowdown in the global economy. According to preliminary data published yesterday by the PMI of the manufacturing sector of the EU’s largest economy, Germany, it fell to its lowest level since July 2009.

High political and economic uncertainty contribute to a decrease in the yield of debt securities, which increases investor interest in gold and other precious metals.

Today, the focus of investors will remain economic statistics from the US and Europe. Later, IFO will publish business climate and expectations indices for Germany. Weaker data will further boost gold and other defensive assets.

 In the USA, it is worth paying attention to the publication of the CB consumer confidence index.

On the chart, the price reached the previously noted target at 1523.00. Now, buyers continue to keep the price at this mark, which significantly increases the likelihood of a breakdown and further development of the upward movement in the direction of the level of 1555.00.

Resistance Levels: 1523.00, 1545.00, 1555.00;

Support Levels: 1517.00, 1500.00, 1485.00.

The main scenario is consolidation above 1523.00 and medium-term growth to 1555.00.

An alternative scenario is a decline to 1500.00 from current levels.

The fundamental background remains moderately positive. On the chart there are signals for a break   through level of 1523.00. Inside the day we consider longs from the levels of 1517.00 and 1500.00.

Fort Financial Services - a licensed international Forex broker. A wide range of trading opportunities: more than 500 tradable contracts, Fort, Flex, Pro and Newbie accounts, direct access to world exchanges, diverse trading platforms: MetaTrader4, CQG Trader, Ninja Trader, Binary Options, partnership programs, free analytics and much more.