Gold prices are growing against the mixed USA employment data, published on Friday. The Nonfarm Payrolls value grew to 227K in January from 157K in the previous month. The unemployment rate grew to 4.8% in January from 4.7% in the previous month. The mixed employment data and the uncertainty of the Trump’s economical policy press the USD, so the gold price could reach the level of 1225.17, but didn’t manage to consolidate above this level. Today there are no significant macroeconomical releases to influence the pair, so the correction to the level of 1215.17 with the fixing of the profit of the long positions is possible.
Support and resistance
Support levels: 1216.71, 1210.18, 1202.92.
Resistance levels: 1225.17, 1233.12, 1240.00.
On the 4-hour chart the Bollinger Bands indicator is pointed upwards, reflecting the activity of the buyers. Still the correction to the middle line (1215.17) is possible, as the price broke the upper border of the Bollinger Bands indicator.
The MACD histogram is in the positive zone, its’ volumes are rising, reflecting the development of the upward trend.
The breakout at 1225.17 will signal the continuation of the growth. In this case open long positions above the level of 1225.17 with the target at 1233.12 and stop loss at 1223.17.
Open short positions below the level of 1215.17 with the target at 1210.18 and stop loss at 1217.00.