Technician

Gold: Will Jobs Data Kill the Rally!

Long
FX:XAUUSD   Gold Spot / U.S. Dollar
19
Gold is consolidating in a possible pennant formation above the 50-days SMA following the latest strong rally. However the price remains below the multiple trend lines

Will the jobs report Kill the Rally? I don't think so...
The Employment report is due within hours, what I expect is a number that is inline or below expectations, i am not expecting a beat this month. This is my personal bias, and could be wrong :).

Having that said, if the numbers miss expectations the bullish scenario will likely continue, and we will probably breakout of the pennant formation and the above the first tier trend line , where i will be looking for a retest of the next major and longer term trend line , which is also very near to a critical horizontal resistance at 1240.00. So i will play that to the upside and limit my risk to 1190.00 level.

If this scenario fails, we will probably be heading to 1180.00 and lower again.


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Technician

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