Prices have behaved as expected yesterday, with the decline yesterday highlighting the strong bearish momentum that remains in play . the slight decline in uS stocks helped support prices against further losses, but with Asian markets still seem optimistic when we see the price of gold downward trend again.
It should be mentioned as well the decline yesterday implies that gold bears are more aggressive because they commit short positions even if we have a major new event risk in the form of US NFP today. The decline also gains compared to profit taking activities on Wednesday, suggesting that the next wave of sell-off down here. Given this, it is possible that a significant bearish movement may occur in the coming hours before NFP is released.
Time Table
Bottom Descending Channel is the obvious downside target at the moment. In case NFP print is worse than expected and the price of gold rally, it is possible that the price of gold can pushed higher but as long as soft resistance in 1288 remains intact, it will not be surprising see S / T lower bearish momentum for the rest of the US session. If Bottom channel is broken before the announcement NFP, a new test can Bottom Channel and the price fail to move above the bottom of the channel, we may see another bearish swing towards this week low.
Moreover, if the number of NFPs favor the bear, it will not be surprising to see prices extending the loss this week and we can expect bearish momentum to continue next week just as there will be fundamental justification for gold to collapse further when prices previously were simply moving the pure feeling alone.
Daily chart
daily chart agrees, suggesting that developments in 1270 is possible. However, a strong bullish response should be provided around the level of 1270 as the upward trend seen in 2014 would be invalidated if 1270 is broken. In addition, we saw no significant bullish decline since the decline in mid-March and a fallback scenario is favored. stochastic indicator agrees with Stoch curve deep in oversold area and likely to spill over - suggesting a short term decline (if not a bullish reversal) is possible
Links :.
GBP / USD - Pound Slides As services PMI Falters
USD / CAD - Loonie Steady As Canada's trade balance improves
AUD / USD - slightly lower After Sluggish Australian retail sales
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