All eyes will be on NFP data (Friday)
Bulls managed to push the price of Gold towards June high at 1439.50$ but failed to breach on July 03. The price retraced after rejected at June’s high, which suggest the short-term (2-day) bias could remain in a range. A sustained trade above 1440$ may induce a rally towards 1450$ our first target suggested by A-B-C wave projection analysis.
On an intraday basis, pivotal finds at 1411$ below here support located at 1401$ and 1396$. In the near-term basis bulls to remain in control as long as the price of gold holds 1380$.
Ahead of NFP data tomorrow, general market condition is likely to remain volatile at the given ranges. Overnight macro data ADP data and ISM reading fell short of expectations. Market participants would wait for NFP, which is due tomorrow.
The dollar index closed in green, but 200MA capped the price. A decisive breakout above 96.30 could extend the corrective rally towards 96.70. In this dollar index move, we more focus on USDCAD as the current bearish trend could pause between 1.3050 its 38.2 fibs reaction-1.2980 its 100MA (Weekly).
If the price lost the lower support, it could fall further to 1.2960 it’s wave C, suggested by the A-B-C corrective structure.
Interestingly, the daily RSI has rebounded slightly from the oversold zone and currently reading above 30.00, and the oscillator spotted with a positive crossover.
A sustained trade above 1.3150 may induce a new rally towards 1.3250 and 1.3290 its 200MA.
Near term (5 days): Support zone remains between 1.3050-1.2960.
It is important to always keep in mind the risks involved in trading with leveraged instruments.
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