Long term it does appear that gold will break this zone. However, it is currently testing a very strong trendline established last year along the top of a range that lasted from July to September. It may drop from this point OR form a lower high/head and shoulders before experiencing some pullback prior to NFP. I expect this week to be a "buy the rumor, sell the news" sort of week for the USD (opposite for gold). Depending on what ADP and PMI numbers are, along with what is said in the FOMC minutes (and how equities are affected by all of these), the drop in the US Dollar and rise in Gold may begin either Wednesday or Friday. If NFP comes out extremely strong, this will probably be invalidated completely.
As usual, watch each point of interest for calculated entries based on price action. And set stop losses to breakeven when a zone has been cleared with your trades sufficiently in profit. I expect Gold to have a moderate correlation to
USDJPY this week, so watch that pair closely as well. When/if USD/JPY reaches 112.600, I'll be watching for opportunities to short the USD. I will also look for buying opportunities on Gold, both as USDJPY reaches resistance and as Gold reaches by TP points.
As usual, watch each point of interest for calculated entries based on price action. And set stop losses to breakeven when a zone has been cleared with your trades sufficiently in profit. I expect Gold to have a moderate correlation to
USDJPY this week, so watch that pair closely as well. When/if USD/JPY reaches 112.600, I'll be watching for opportunities to short the USD. I will also look for buying opportunities on Gold, both as USDJPY reaches resistance and as Gold reaches by TP points.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.