Fundamentally, the NFP numbers tend be positive and a decrease in unemployment rate. If this news is as per the analysis, the market should absorb it as a bearish sentiment.  This will be due to the strength of dollar and gold would naturally, push down.

On a higher timeframe of daily, weekly, we are still bearish on gold. The only challenge we face right now is that NFP is ahead and what gold tries to do. Our anticipation for gold remains bearish. At this current level of 1764, we see a resistance halting the gold bullish pressure, earlier created in the NYC session. Previously, there were concurrent rejections at this level. Therefore, we anticipate the market further falling down from this level.

On a higher scheme of things, we see a resistance trendline and a support trendline. The resistance trendline is in confluence with the resistance level, whereas the ascending trendline is forming below the current market prices. Once this trendline is broken, we will see a massive bearish pressure being created.

The 75-78.6% retracement level is in confluence with the resistance level. The price of the retracement level is 1765. If market tests this level, we will see a confluence with the resistance level.

EMA 50 has had a bullish breakout and impends a retest, and 200 are in a bearish form, with a bearish death cross. At the resistance level, along with the trendline and retracement confluence, we will also see the EMA 200 retest at this level.

Both the oscillators are in a bullish region, hovering around the neutral levels. RSI at 58, and CCI at 100. With this current scenario on the oscillators, we need to wait for them to be in their over-bought region, or form a bearish divergence. The bearish divergence will shift the trend into a bearish one.

GOLD is setting up a remarkable bearish setup. All the factors we use for technical analysis have perfectly lined up for shorts. Although the news is upcoming on Friday, we will see how gold reacts. Maybe the market makers are gathering the liquidity for the market to drop.

GOLD sells on NFP

Oct 08 2021

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