Technical Bias: Bearish
Key Takeaways:
- Gold holds tight range ahead of NFP release
- $1142 remains key support area
- NFP due in early NY session
The price of Gold is holding a tight range ahead of the US employment news which will give a new direction to precious metals. The technical bias remains bearish due to a Lower High and Lower Low in the recent wave on daily chart.
Technical Analysis
As of this writing, the yellow metal is being traded near $1183 an ounce. A support may be noted around $1181, the 23.6% fib level ahead of $1150, the psychological number and then $1142, the low of the last major dip as demonstrated in the following daily chart.
On the upside, the precious metal is expected to face a hurdle near $1205, the 38.2% fib level ahead of $1224, the confluence of 50% fib level as well as high of the last major upside move. The technical bias will remain bearish as long as the $1224 resistance area is intact.
Nonfarm Payrolls
The US Bureau of Economic Analysis is due to release the nonfarm payrolls report today during the early New York session. According to the average forecast of different economists, the US corporations added 224K jobs in April as compared to 126K jobs in the month before. General speaking, higher NFP reading is considered positive for the economy thus a better than expected actual outcome will be seen as bearish for Gold and vice versa.
Trade Idea
Considering the overall technical and fundamental outlook, buying or selling the precious metal can be a good decision if we get today’s daily candle in the form of a pin bar or engulfing candle.
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