In the current situation, the gold is still in a bearish momentum, forming lower lows and lower highs. It was unable to break its previous lower high which makes it appalling for the market to continue its journey bearish. Apart from this, higher timeframes also confluence with the idea of the bearish pressure sustaining. Market bounced back down from the resistance level of 1835, which was a strong resistance. Right now, at the 1830, we have a resistance which needs to be breached in order for the market to continue in the other direction. We need another retest higher for the market to enter our short positions. Continuous lower highs and lower lows, it is safe to say that the market tends to go bearish on the NFP. 

On H4, ascending trendline has been breached. After the breakout sells, the candles are forming below the trendline. Also, there is no opposite/descending trendline which can null the effect of the breakout sell.

The golden retracement area of 75-78.6% resides slightly below the resistance level. This level is the go short level for us where we will take a short position.

EMA 50 has broken out for sells and is bearish whereas EMA 200 is still bullish, being below the current price action. Since the EMA 200 stands below the current prices and is not in confluence with any other factor to solidify the bullish pressure, we tend to anticipate the breakout of the EMA 200 as well during the NFP.

Both the oscillators are in a bearish region, with a higher window towards the over sold region. In order to sell at a good level, we need the oscillators at the neutralized levels. RSI is at 49 and CCI at -15. This gives us plenty of room to take the short sell from the resistance level.

NFP day today for gold

Apr 01 2022

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