FX:XAUUSD within a strong rally stops and forms a flat before the publication of NFP. Relative to 2288 a false breakout is formed, bringing sellers into the market.
The dollar is in a correction phase, as is gold. The price is testing the local low of 2267.67 but still does not reach the strong liquidity zones of 2265, 2228, 2222. There is still a strong buyer in the market, but after the correction and the false breakdown of 2288 a seller appears. NFP is ahead, a rather important news, which can both turn the market and strengthen the current movement. It is worth paying attention to the resistance at 2288 and 2305. There is a chance to see the continuation of counter-trend correction, but before that there is a chance that a big player will drive the price to ATH before further decline to the specified liquidity areas: 2265, 2228 or to the support of the formal channel.
Resistance levels: 2288, 2305 Support levels: 2265, 2228, 2222
Technical factors are not enough now to specify the key areas for opening sales or purchases, so it is worth to base on the fundamental reasons and strong resistance and support areas.
Traders expect to see NonFarm Payrolls 212K versus 275K, this generally indicates a bearish bias of speculators towards the US market. That makes sense.
Yesterday we saw bad data on Initial Jobless Claims, the figure rose by 8K, which broke the wave of bullish data for 5 weeks in a row.
Overall this could be just as negative for NFP, but we can't say for sure if the actual data will be above or below 212K, we can only speculate.
Based on last month's data, there is a high probability to see the actual NFP higher than 212K, which could be bullish for the dollar index and generally negative for the forex market.
PS: Data above the expected 212K will be bullish for the dollar Data below the expected 212K will be bearish for the USD
Comment
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The gold market is very strong. Even amid strong news for the dollar, speculators are still heavily buying all possible drops. It's an anomaly
price is likely to reach 2400$ and then might drop from there.
anilwaje11
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OK,lets see
princesaif85
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Hey RLinda, What can I expect from NFP? The market is still bullish structure . waiting for my love NFP expected on the higher side, we need at least 235K. This is also a positive number if the market breaks 2252 then the door is open towards 2230. Market range today 2230 -2315.
RLinda
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@princesaif85, Yes, the market is bullish, but NFP 235K (above 212K) will be bullish for the dollar, which could be generally negative for gold.
But gold's movement right now is anomalous and inadequate Under normal conditions, the dollar and gold cannot rise together. Very interesting)))