Today is a big day in the trading industry as we are awaiting the release of the highest anticipated data, which causes a volatile move on gold. Technically, gold has tapped the monthly, weekly and daily resistance level, and was unable to break it towards the higher side. With this, we see a retracement towards the bearish side which might be achieved from the resistance level. The price we are looking to go short is at 2055. It should be noted, the trend is still bullish. We are only anticipating this move as a retracement.

The ascending trendline has broken out for sells but needs to be validated after the break of the support level.

The retracement level is in confluence with the resistance level and aligns perfectly with the price action. We will see how prices react at the retracement level, forming an engulfing or some sort of rejection candle.

EMA 50 is still bullish and the candles are below the price action currently. The profit target can be set at the EMA 50 retest. 

RSI is at 59. This is the bullish region. RSI should hop towards the over bough region and form a bearish divergence or just the exhaustion, but should be aligned with the paraflix of the price action.

Setting up for shorts before NFP

May 05 2023