Gold is trading at the daily pivot point and there is enough scope for the price to ascend further towards the 38.2% fib located at 1219 with immediate resistances at 1187 and 1199. The immediate support is the S1 at 1167 and if price breaks below the S1 then the price will head to 1150. Price on Gold has been retracing for the last 3 weeks now and we had mentioned this move few weeks back. The trigger and the identification was the weekly doji that was formed right above the longer term ascending channel where we had our pending long. Though our order was place below the reversal point, yet we had mentioned that the reversal will soon occur. We wouldn't be surprised to see Gold lose its gains this week especially if the present 23.6% fib at 1181 fails to give way for 3 consecutive days. Our sell signal will be the exhaustion candle on the daily chart, and when found, we will quickly go in for a sell.
Dollar was able to erase all of its recent losses and managed to climb above the 116 mark and is currently trading in the pre NFP's range. We may once again see the USD/JPY consolidate between 118 and 116 level in spite of a hard move towards the downside. Both longer and shorter term indicators are signalling a Bullish move and we may see the Buck advance against the Japs this week. Our closest support is at 116.57 which is also considered as the lowest point of the range and any new or existing buyers can target this support to go long. Our next target on Dollar Yen is at 121.36, we will use all retracements as buying opportunities on Dollar.
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