XAUUSD potential movement and entry1) NEWS TO NOTE:
THE FEDERAL RESERVE AND THE BANK OF ENGLAND INCREASED INTEREST RATES BY 0.75% EACH WHICH STRENGTHENED USD AND GBP WHICH IS BAD NEWS FOR GOLD.
JEROME POWELL (CHAIRMAN OF FEDERAL RESERVE GAVE A VERY HAWKISH SPEECH A COUPLE DAYS AGO IN WHICH HE AFFIRMED THAT INTEREST RATES WILL BE RISING WHICH ALSO STRENGTHENED USD)
TODAY (FRIDAY 4TH) US NONFARM PAYROLLS CAME OUT WITH BETTER THEN EXPECTED DATA ABOUT US EMPLOYMENT
MORE EMPLOYMENT →MORE PEOPLE IN ECONOMY →MORE MONEY IN CIRCULATION →MORE INFLATION → MORE REASON FOR FED TO INCREASE INTEREST RATES → STRONGER USD → WEAKER XAUUSD
2) UPCOMING NEWS TO NOTE:
THURSDAY 10TH NOVEMBER CPI (upcoming September US inflation report) →THIS WILL EFFECT GOLD BECAUSE IT EFFECTS USD
Stubborn readings could translate into sustained elevation in Feds rate hike odds (sustained higher interest rates). While this would be good news for the US Dollar, it will likely be bad news for US stocks and gold prices.
3) TECHNICAL ANALYSIS
I expect the price to have a short drawback towards the primary resistance line, however, the primary resistance line (top resistance line) is unlikely to be tested (touched by price) due to the bullish momentum of gold. Then I expect gold to continue on its uptrend. If the primary resistance line is tested, it would be an excellent entry with a risk to reward of 1:2. If it is not tested, i wouldn't advise a buy order, unless there is candle patterns and chart patterns which suggest a strong bullish momentum (for example a engulfing candle or a 3.82 candle or a close above candle. In the past couple of days there has been higher lows and higher highs however this is only intraday, and over a bigger time-frame gold is bearish.
Notes:
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SNIPER
