Gold eyes 1800 ahead of NFP
After a slew of less hawkish than expected central bank meetings this week. Gold is charging higher. Gold rallied over $30 yesterday after the Fed pushed back on an interest rate hike and the BoE unexpectedly kept interest rates unchanged. The Gold managed to book strong gains despite the US Dollar also charging northwards.
All eyes will now be on the non-farm payroll, especially given that the Fed said that employment was a key factor to hike rates.
Expectations are for 425k jobs to have been created, up from 194k.
Where next for gold prices?
Gold had been extending its rebound from $1723, trading within an ascending channel before hitting resistance at 1814 and moving lower to $1761.
The price has been trading in a sideways fashion over the past 10 days. RSI is also moving into bullish territory hinting towards further upside.
However, any meaningful move higher would need to retake $1814 the October high for the bulls to gain traction towards $1834 the September high.
Sellers could look for a move below 1760 the weekly low to open the door to $1748 and $1723.
EURUSD looks to EZ retail sales & NFP
EUR/USD is consolidating around 1.1550 as sellers pause for breath with the 2021 low in sight.
EUR/USD sold off on Thursday after a downward revision in EZ composite PMI and as the greenback rebounded following a post Fed selloff.
German industrial production unexpectedly fell 1.1% MoM in September. Attention now shifts to Eurozone retail sales which are expected to rise 0.2% MoM in September.
US NFP is expected to be the biggest driving force for the pair with a strong reading is likely to strengthen the USD.
Where next for EUR/USD?
EURUSD has been trending lower since late May. It trades below the multi-month falling trendline, below the 50 & 200 sma on the 4 hour chart. The RSI is in bearish territory despite pointing northwards suggesting that the move higher is a correction before further weakness.
Sellers could look for a move below support at 1.1525 the yearly low ahead of 1.15 the psychological level.
Buyers would need to close the week above 1.1620 the weekly high and 200 sma to look towards a more bullish outlook and 1.1675 the falling trendline resistance.
Written by Admin
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