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Gold is facing a support level at $1270 which we expect to bounce higher from it for testing 1278,
Below is a look at the most important data that may have a direct or indirect impact on the readings to be released today:
The start of the week was dramatic for the euro, despite the success of Angela Merkel for a fourth term during the German federal elections on Sunday, September 24, the Christian Democratic Union (CDU) and the Christian Social Union (CSU) win 33% of the vote. The ruling party's current partner the Social Democratic Party (SDP) printed the worst result since the Second World War by getting 20.5%, prompting the leader of the party to describe this day by bitter today, and the shock was in the success of the far right-wing party to enter parliament for the first time in half a century, represented by the Alternative for Germany Party (AFD), which has not been established for 4 years.
Prices fall yesterday after breaking support level at 1300$ which represents a Fibonacci retracement 38.2%, as long prices staying below this level we expect further decline targeting 1280$ then 1263$.
The markets absorbed the Fed's decisions yesterday, US stocks started to fall from historical highs and the US dollar saw some slight declines after rising overnight after the Federal Reserve kept interest rates unchanged at 1.25% and left the door open for a third raise this year.
Prices pulled back since the beginning of trading day reaching an important support at 1295$, we expect with breaking this level prices would be heading to levels of 1280 then 1263. Staying higher than 1300$ would support prices to rise again.
The start of the week's trading was fairly calm, but it saw some notable movements in the US dollar as well as US stocks, which recorded their highest levels historically as market fears about North Korea firing a new missile faded and the focus shifted to the Fed meeting on Wednesday evening.
The three major indexes of US stocks fell today, from their highest levels in yesterday's closing, following positive inflation data that boosted the chances of a rate hike soon. The consumer price index rose more-than-expected in August, the biggest reading in seven months, by 1.9 % on yearly basis.
Prices still moving inside an ascending channel since July, current support would be at 1322$, breaking this level would send prices to the bottom line of the channel near to level of 1308$ then bouncing higher to levels of 1345$ and 1365$ at the upper line of the channel.
US stocks rose broadly with the beginning of this week as Hurricane Irma was downgraded to a tropical storm, easing worries about its impact on economic growth. North Korea also refrained from any missile tests.
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