XAU/USD is trading again below the $1,900 psychological level signaling that the rebound could be over soon. The price failed for the second time in a few days to fix above the psychological level indicating strong selling pressure.
USDX rally could force the price of gold to drop deeper in the short term. It remains to be seen how EUR/USD will react to the NFP report. Today, the US ISM Non-Manufacturing PMI, the Final Services PMI, and the Euro-zone data are the main drivers in the market.
Gold is trading in the red on the H4 chart, a bearish drop below the Pivot Point ($1,888) level could attract more sellers. The pressure remains high as long it stays under the black downtrend line.
You should be careful as long the price floats $1,900 level. Only a fresh new lower low, drop under $1,848 could really activate a broader drop. A buying opportunity should appear after a valid breakout above the downtrend line.
- GOLD Trading Tips & Conclusion
Buy a valid breakout above the downtrend line and above the R1 ($1,927) level. The $2,000 and $2,075 levels could be used as upside targets.
Sell from below the $1,848 level with an immediate downside goal at the $1,800 psychological level.The material has been provided by InstaForex Company - www.instaforex.com