The metal managed to hold the given support zone, but on the back of strengthening USD, gold has lost momentum.
Ahead of the US jobs data, traders focused on the US dollar. Today, they eye the ADP no-farm employment change, trade balance, and ISM non-manufacturing PMI. Traders do expect wild moves during a day.
Atlanta Fed President Dennis Lockhart said the FOMC was nearly ready to raise the key interest rates.
The metal has been moving sideways for 12 consequent sessions. However, it might change this Friday after the form of non-farm employment data.
We do not expect wild moves until Friday, as market is awaiting the NFP data which can influence the trend.
The yellow metal was trading at $1,086.50 during today’s Asian session, opened higher on a bearish note. In the weekly chart, the metal managed to hold the channel support trend line at $1,085.00 on a closing basis. The metal has been reaching lower highs and lower lows breaking below the large bearish head & shoulder pattern.
The weekly support is found at $1,085.00, $1,077.00, and $1,073.00. A weekly close below $1,085.00 opens gates to $1,068.00 initially and $1,045.00 and $1,005.00 later. In the monthly chart, strong support zone is seen between $1,045.00 and $1,032.00. The metal fell below the 14-year ascending trendline in the monthly chart. It managed to close above $1,085.00 on a daily closing basis for eleven consecutive days.
A daily close below $1,085.00 opens gates to $1,077.00 initially and $1,072.00, $1,065.00, and $1,055.00 later.
Intraday: Intraday support is found at $1,084.00, $1,080.00, and $1,077.00. Resistance is seen at $1,090.00, $1,093.00, and $1,095.00. We can observe a bearish h&s pattern in the hourly chart. Neck line is seen between $1,079.70 and $1,080.70.
Ahead of a series of major US data, the EUR/USD, GBP/USD, and gold formed a bearish h&s patterns in their hourly charts.
The metal has been making lower lows in the four-hour chart. The metal made a triple top at $1,105.00.
Panic is likely to be triggered below $1,077.00. We guess the metal is likely to fall towards 1072.00 in case $1,077.00 is taken out. Use a rise to sell in favor of the trend.
Buying is available above $1,092.00with a target at $1,095.00. Strong buying momentum takes place above $1,096.00 towards $1,100.00, $1,103.00, and $1,105.00. Real strength is expected only above $1,105.00 towards $1,110.00 and $1,112.00
Review: At yesterday’s session, we forecasted that the metal would hold the support between $1,082.00 and $1,080.00 to bounce towards $1,090.00 or $1,092.00. The metal reached a low at $1,080.00 and a high at $1,094.50.
The material has been provided by InstaForex Company – www.instaforex.com