Price failed to break the 0.23 fib (1241.357) level which is was also a previous resistance level now turned support. Slow stochastics are now indicating that Gold is moving out of an oversold position. Got a tight stop in case we drop to the 0.50 Fib (1220.185) leading into non farm payrolls this Friday.
Good commodity prices like iron ore and strong economic data have carried the aussie dollar over the past couple of weeks. We can expect a good pull back as we move into a well respected technical zone, confirmed by a head and shoulders formation indicating some exhaustion. We may see the market move side ways as all eyes are on the US jobs data later this week.