Gold is Targeting #1,759.80 and #1,727.80 in extension

Gold's general commentary: Despite the decline on DX, Gold is extending it’s depressed moves / Buying pressure is evident, but still Gold is showcasing the strong underlying Bearish trend. What keeps Gold ranged is the Bond Yields Trading near Support cluster, and above almost an Monthly Low’s on the Usd-Jpy. Also, regarding the E.U. opening, I spotted also side Swing movements (German PMI missed its forecast by a wide margin), I am only expecting Gold to Sell the every rise under these conditions. More specifically with #1,792.80 as the Hourly 4 chart’s Resistance (and with the Hourly 1 chart well Supporting on #1,759.80) if it breaks I am expecting an aggressive takedown towards #1,752.80 within #1 - #2 sessions, of course if virus fears vanish from the markets as they are already priced in most likely. Daily chart is slowly turning Bearish and can Support the downtrend (in my reports I have mentioned that the Daily chart Bearish confirmation is what I have been waiting for). This #1 - #2 session horizon coincides with today’s release of the U.S. Fundamental events, so all the parameters support a speculative downtrend on Gold amplified by a rise on the DX and Bond Yields. Keep in mind that Gold is surely Bearish on both Short and Medium-term, what keeps it ranged is current events on the correlating assets (Fundamentally and Usd-Jpy very likely). I am expecting uptrend continuation on DX which can postpone and limit any recovery attempts, aiming the last Yearly Low of this cycle (as current configuration is Neutral Gold-wise), but once Bond Yields break the psychological barrier / Resistance (June #7 Top), it is a sign that Gold should be sold on Medium-term towards #1,700.80, and #1,678.80 benchmark.


Technical analysis: Gold is now comfortably Trading not only below the broken Higher Low’s trendline of the Daily chart’s solid Descending Channel that started after September #30 Bottom, also representing the #1,759.80 pivot Medium-term Support, and break of engages the Multi-Month Bearish domination on the aftermath. Aswell, if it breaks it will invalidate the #1,759.80 - #1,788.80 High Volatility Zone and may open the way for the #1,727.80 Lower Low extension of August #9. If on the other hand #1,788.90 holds the possible negative NFP High impact announcement, it can finally kickstart an even steeper takedown towards the Daily chart’s #1,759.80 yet again, which from June #2’s peak, has always been tested. Daily chart’s MACD is on strong Bearish divergence, aswell it appears that the RSI is pointing that Gold may be pricing the Top zone here (temporary or not), but everything depends upon how DX and Bond Yields will Trade in the coming sessions. Regarding today’s session and Short-term, NFP is on the calendar. The last #3 NFP reports have delivered a Short-term mixed values on Gold due to a temporary pullback on Bond Yields and (then) Stock markets, while last one had less or no impact on Gold. So if I have another Higher (than the previous) reading throughout today’s session, Fundamentally I may get the Selling pressure as a result which is going in my favour.


My position: I will await for NFP announcement and on positive reading, I will Sell Gold on spot (regardless of what the price will be) towards #1,727.80. However, if #1,759.80 breaks before the NFP, I will Sell on spot aswell and add more Selling orders on positive NFP reading, pursuing, as discussed #1,727.80 in both cases. I am expecting NFP to go in Fed's favour (according to further tapering) and have reading better than the forecasted. I am expecting #1,727.80 next, regardless of the NFP numbers.