We have an interesting opportunity for the day. I think the GOLD might present us a wonderful trading opportunity in the short to medium term. There is a triangle forming on the 4 hour chart for the GOLD, as can be seen below. A break either to the upside or downside will trigger a trade for us.
If the GOLD manages to break the triangle and resistance at around the 1272/75 level, then we can plan to enter a buy trade. On the other hand, if the GOLD trades lower, and breaks the triangle and support level at around 1240, then we can jump into a sell trade. Remember, we will wait for it close below or above before entering into a trade. We do not want to trade a false break, as we have a high-risk event scheduled later during the day.
Initial target for the buy entry should be around the 1290 and final target could be around 1300 level. Stop should be placed below the broken resistance level. Initial target for the sell entry should be around the 1210 level, and final target could be around the 1190 level. Stop should be placed above the broken support level in this case.
Reviewing yesterday’s events and trades
Yesterday, both the central banks kept the interest rates unchanged as expected. At the ECB press conference, then ECB president was a bit more optimistic than usual. The EURUSD jumped after the press conference and traded as high as 1.3610. The pair is now trading a touch lower since the Asian session. The US initial jobless claims data was also released, which registered a reading of 331K, beating the expectations of 335K. The Canadian Ivey PMI was also published, which jumped higher from 46.3 to 56.8. There were no major moves yesterday, except for the Euro pairs, which gained momentum to the upside.
Fundamental Outlook for the day
Today is another important day, as we have the US Nonfarm payroll and the unemployment rate scheduled to be released. The market is expecting a gain of 185k this time after the disappointing reading last time. The unemployment rate is expected to remain stable at around 6.7%. I think we should be very careful friends as there can be a surprise today. The market can react in a very strange manner, as there are possibilities of a revision. So, trade very carefully friends, and try not to enter into an unnecessary and risky trade.
This analysis is taken from today’s Daily Market Forecast, which also includes trade opportunities on: EURUSD, GBPUSD, AUDNZD, USDJPY and USDCAD.
Get it HERE: Vladimir’s Markets Forecast
Have a great weekend friends. Happy trading!
