Gold Trades Below Resistance Ahead of the Fed and NFP

1 February, 2017

We will see the release of the US ISM Manufacturing PMI, and ISM Prices Paid for January, at 15:00 GMT on Wednesday 1st February.

The Fed will release Monetary Policy statement and interest rate decision at 19:00 GMT on the same day.

Trump’s stance is in favour of a weak dollar, therefore the changes of the Fed’s economic projections and the performance of the upcoming Non-Farm payroll figure will be influential to dollar strength.

On the 4 hourly chart, gold sot is trading below the near term major resistance level at 1200, where the 50 SMA converges. The selling pressure is heavier above the level.

The 4 hourly Stochastic Oscillator is crossing over from above, suggesting a further retracement.

The resistance level is at 1200, followed by 1205 and 1210.
The support line is at 1195, followed by 1190 and 1185.

Keep an eye on Fed’s statement on Wednesday, and the NFP figure on Friday, as they will influence the strength of the dollar, dollar crosses and precious metals.


Source  
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