Gold Prices Rebound on Positive NFP Data
- Gold Prices Rebound on Positive NFP Data
- Current Daily Support Found at $1,200.00
- Looking for additional trade ideas for Gold and the US Dollar? Read our 2017 Market Forecast
Gold prices are rebounding, as the US Dollar declines on today’s NFP data. Expectations for today’s NFP (Non-Farm Payrolls) event were set at 200k, and released better than expected at 235k. Also, January’s high was revised upwards from 227k to 238k.
Technically, gold prices have found support after declining to a 76.4% Fibonacci retracement level found near $1,200.00. This line has been calculated by measuring the distance between the January 27th low to the February 24th high. If gold prices remain support here a bullish close would stem a seven day losing streak for the commodity. In a continued bullish scenario, traders should next look for the commodity to test the 10 day EMA (exponential moving average) at $1,220.53.
Gold Price with Fibonacci Retracement Levels
Analysis for the US Dollar has the Index trading back below its 10 day EMA located at 101.56. A close below this value would suggest a significant change in momentum has occurred to close this week’s trading. If prices continue to decline from here, the next value of support may be found at the standing weekly low at 101.11. A breakout below this point would have significant bearish implications for the US Dollar, at which point it would be expected to see gold prices rally further.
It should be noted here that the US Dollar is currently testing an ascending trendline, which has been drawn by connecting a series of higher lows beginning with the February 2nd low at 99.15. If the Index fails to breakout below this point, traders may look for the US Dollar to rebound back toward monthly highs at 102.18. In this bullish US Dollar scenario, it would be reasonably be expected to see gold prices again decline back in the direction of the assets short term downtrend. 101.56.
US Dollar Daily Chart with Trendline
--- Written by Walker, Analyst for DailyFX.com
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.