Analysis of Gold for April 05,.2021 - Potential for downside rotation towards $1.708

Japan - Jibun Bank/Markit PMIs Services 48.3 and Composite 49.9 (final) for March

Both improved on the flash readings, but of course both indicating contractions still:preliminary and prior can be found hereServices 48.3 (previous 46.3, preliminary 46.5 reading)most components of the service-sector survey remained in contractionbut all of them roseoutlook component expanded at the fastest pace since May 2013Composite 49.9 previous 48.2Further Development

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Analyzing the current trading chart of Gold, I found that there is potential for the downside continuation due to 2 days rally and strong downside trend in the background.My advice is to watch for selling opportunities with the downside targets at $1.708 and $1.680.Stochastic oscillator is in the overbought zone, which is another sign for downside movement.

The material has been provided by InstaForex Company - www.instaforex.com

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