In the end of last week, the price of gold fell amid strengthening after the publication of strong labour market data US Dollar.
The Nonfarm Payrolls grew from 252 to 292 thousands while economists predicted a fall to 200 thousands. The Unemployment Rate remained unchanged at 5% below which it last time declined in 2007. At the same time, Average Hourly Earnings did not match the expectations as it came out unchanged, instead of a predicted 0.2% growth.
Support and resistance
Bollinger Bands on the daily chart is moving up while the price range is widening. At the same time, the indicator has formed a signal for correctional decline. MACD is growing and giving a strong buy signal. Stochastic is in the overbought zone and trying to turn down.
The indicators recommend waiting for clearer trading signals.
Support levels: 1101.05 (local low), 1095.53, 1088.66, 1083.26 (6 January low), 1081.47, 1078.17, 1074.45, 1070.00.
Resistance levels: 1105.50 (local high), 1110.00, 1115.70 (4 November high), 1121.11, 1127.80, 1132.52.
Long positions can be opened after the breakout of the level of 1118.83 (with the appropriate indicators signals) with the target at 1124.30 and stop-loss at 1117.00. Validity – 3-4 days.
Short positions can be opened after the price rebound from the level of 1094.00 with the target at 1084.00 and stop-loss at 1100.00. Validity – 2-3 days.