Gold Finally Submit to strong US Dollar, Awaiting US Jobless Claims
Gold abandoned the bullish levels after a long struggle with US dollar with efforts to withhold last two weeks' strong gains. Recent bullish waves despite strong US dollar performance was justified to US uncertainties and political rift lead by Trump and his previous decisions. Last week, FOMC's hints about March Fed hike increased the odds up to 85%, and Trump patriotic speech, both assisted to create the current stability and things are in Accord. Add to that, US strong data through this week boosted US dollar levels and US Index peeked to 102.24 today, highest levels since 12th January. As a result, gold shed -$60.62 since last week and had to give up the title being a sacred haven metal.
XAU/USD will undergo a further test today as US released Jobless Claims but the main and vital data will be tomorrow with NFP report. Both news will either dig a deeper hole with extension to bearish momentum and failure for support levels, or the yellow metal will make a short-term-upward-correction and save some dignity.
Fundamentals:
1- US jobless claims today at 1:30 PM GMT.
2- US Non-Farm Payrolls ( NFP ) tomorrow at 1:30 PM GMT.
Technical :
Trend : Bearish
Daily Pp 1209.13
Resistance levels : R1 1215.10, R2 1227.20 , R3 1234.30
Support levels : S1 1198.60, S2 1191.07 , 1180.12
Remark : Look forward for US data today, but the main focus is on US NFP report tomorrow. Also, FOMC meeting next week where Fed rates will be released, not to be missed as it has a huge impact on all markets. Closing above R3 level is needed for trend reversal.
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