Early in the American session, Gold (XAU/USD) is trading around 1,924.97 above the 21 SMA and below the 200 EMA. The Non-Farm Payrolls (NFP) data was released a few minutes ago. The data came out below expectations with a result of 209K which means employment contracted in June.
In the next few hours, gold is expected to cover the gap left by the announcement of the NFP data around 1,915. If gold fails to consolidate above 1,930, we could expect a technical correction to 1,915. The price could even bottom out at the uptrend channel formed at about 1,911 since June 28.
In the next few hours, we expect gold to retrace towards 1,920 (21 SMA) or 1,915 (GAP) which could be seen as an opportunity to buy gold with targets at 1,925 and 1,938 (200 EMA).
The eagle indicator has been giving a positive signal since June 28. So, we are likely to see a pullback and grasp the opportunity to buy in the coming hours.
If gold reaches the top of the uptrend channel around 1,940, this could be seen as a signal to sell because there is strong resistance at the 2/8 Murray and the 200 EMA. This level could act as a barrier for gold and the instrument could fall towards the area of 1,920.
Our trading plan for the next few hours is to buy gold in case there is a technical correction towards the 21 SMA located at 1,920 or around 1,915 with targets at 1,925 and 1,938. The eagle indicator is giving a positive signal which supports our bullish strategy.
