XAUUSD: Sell at 2505-2510 resistance zone, target 2490-2480
Updated
Yesterday was Labor Day in the United States. The amplitude of gold was very small and we did not participate in any transactions. Today the market is back on track and it is time to open our transactions!
Gold fundamentals:
Tensions in the Middle East have escalated again, and risk aversion has rekindled.
Due to the recent positive economic data, the U.S. dollar index continues to rebound, and the ISM manufacturing PMI for August to be released today is expected to rise slightly to 47.5 from 46.8 in July, indicating that the manufacturing industry is recovering moderately, which will continue to support the U.S. dollar. rebound, gold falls.
In addition, the market expects that the United States will create 163,000 new jobs in August and the unemployment rate is also expected to rise to 4.2%. This reflects strong economic fundamentals and further boosts the dollar.
Gold technical aspect:
Judging from the Fibonacci retracement of the decline between the highest point of 2528 and the lowest point of 2490, 2505 is 0.618 and 2510 is 0.5, so this range is the resistance to gold's rebound.
Trading strategy:
Since the direction is clear now and 2505-2510 is the resistance area, we can sell in this range.
Gold fundamentals:
Tensions in the Middle East have escalated again, and risk aversion has rekindled.
Due to the recent positive economic data, the U.S. dollar index continues to rebound, and the ISM manufacturing PMI for August to be released today is expected to rise slightly to 47.5 from 46.8 in July, indicating that the manufacturing industry is recovering moderately, which will continue to support the U.S. dollar. rebound, gold falls.
In addition, the market expects that the United States will create 163,000 new jobs in August and the unemployment rate is also expected to rise to 4.2%. This reflects strong economic fundamentals and further boosts the dollar.
Gold technical aspect:
Judging from the Fibonacci retracement of the decline between the highest point of 2528 and the lowest point of 2490, 2505 is 0.618 and 2510 is 0.5, so this range is the resistance to gold's rebound.
Trading strategy:
Since the direction is clear now and 2505-2510 is the resistance area, we can sell in this range.
Trade active
Now it seems that the gold price started to fall directly after touching the resistance area of 2505-2510, which is in line with our previous prediction, but there is a certain support near 2493 below, so we should not chase the decline for the time being and continue to rebound to the high point SellTrade active
Today, the market is waiting for the release of PMI data. Before the data is released, the gold price fluctuates greatly due to speculation, which will definitely lead to forced positions that will easily lose money, so we must stick to our own views.
I will still wait for the gold price to reach the 2510-2505 area to sell, and just wait and see before that
Trade active
The PMI data has been released, and the published value is 47.2. Although it does not meet the market expectation of 47.5, it is still higher than 46.8 in July. Therefore, as I said in the article, the US manufacturing industry is recovering moderately.
Judging from the decline in gold, the data has been digested in advance, so there is no problem with gold being bearish. But precisely because it has been digested in advance, we cannot chase the short position now, which has certain risks.
If there is no rebound today, I will not participate in the transaction. Just continue to wait and see. I will notify you if there is a good opportunity.
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