Gold Technical Analysis – Focus on the US NFP report
Fundamental
Overview
Gold continued to print new
all-time highs day after day this week as the fall in real yields and later the
US dollar gave the precious metal a tailwind to push into new highs. The most
recent rise though has been quite parabolic and that’s often followed by a
deeper pullback.
We have the US NFP report
tomorrow and we might see some profit taking ahead of the release. The labour
market data throughout January has been strong, so we might get a strong NFP
which could weigh on gold in the short term and offer a dip-buying opportunity
at better levels.
Gold
Technical Analysis – Daily Timeframe
Gold Daily
On the daily chart, we can
see that gold extended the rally into new all-time highs yesterday. From a risk
management perspective, the buyers will have a better risk to reward setup around
the 2790 level. The sellers, on the other hand, will want to see the price
breaking below that level to increase the bearish bets into the 2600 level
next.
Gold Technical Analysis
– 4 hour Timeframe
Gold 4 hour
On the 4 hour chart, we can
see that the price has been following well the upward trendline but more recently the
momentum picked up strongly turning it into a parabolic rise. We can often see
deeper pullbacks after such price action.
The buyers will likely lean
on the trendline again with the 2790 level for confluence,
while the sellers will look for a break lower to gain more conviction and
increase the bearish bets into new lows.
Gold Technical Analysis
– 1 hour Timeframe
Gold 1 hour
On the 1 hour chart, we can
see that we broke below a minor upward trendline that was defining the bullish
momentum on this timeframe. The sellers will likely pile in here to position
for the pullback into the 2790 level. The buyers, on the other hand, will want
to see the price breaking above the downward counter-trendline to position for
new highs. The red lines define the average daily range for today.
Upcoming
Catalysts
Today we get the latest US Jobless Claims
figures, while tomorrow we conclude the week with the US NFP report.
