Gold forms a smooth transition from the downtrend to the 1984-1954 consolidation. We see an attempt of downtrend change, but will it be confirmed after the NFP?
Yesterday the price made the retest of 1984 resistance, but at the same time we did not see the fall after the false break-down of the resistance. There is a consolidation near the resistance between 1984 and 1973. Another retest to the resistance might break it.
Yesterday the preliminary ADP report was released, which showed the positive dynamics for the USD, but the gold went up anyway.
I suppose that there is a chance that the NFP might show some growth, in which case the USD should get stronger, but at the same time the index is having a hard time. Still, there is a chance that the gold might get stronger.
Reminder:
- Average Hourly Earnings - analysts expect data may be worse than last period
- Nonfarm Payrolls - analysts expect the data to be bearish for the dollar.
- Unemployment Rate - analysts expect worse data for the dollar
The moving averages act as a strong support. We see the MA crossing, which is a strong bullish signal.
Strong support: 1973.74
Strong resistance: 1984.325
I expect the gold will try to break the resistance, because the interest in the market is increasing with the lower values. But today is the NFP, remember the rules of trading before the news. Be careful!
Sincerely R. Linda!