Gold Remains Volatile Ahead of U.S. NFP Employment Change Data, $15+ Volatility Likely; Feb 05, 2021
U.S. NFP Employment Change
The most awaited event is here and that is U.S. NFP Employment Change and Unemployment Rate. U.S. will release job data for the month of January. Job creation is an important leading indicator of consumer spending, which accounts for a majority of overall economic activity. This is vital economic data released shortly after the month ends. The combination of importance and earliness makes for hefty market impacts. The employment change must be higher than expected while unemployment rate should be lower than expected to see U.S. dollar strengthening.
Let’s see how Gold has reacted during the previous data release:
XAU/USD (Gold): Gold recovers from previous losses and touched $1,811 mark in European hours. The pair made intraday low at $1,792 mark. On a Day Chart as well as H1 chart, triple EMA confirms the bearish trend too. A consistent close above $1,808 on H1 chart may bring some upside rally. Alternatively, a sustained close below $1,785 will check further key supports.
Key Resistances: $1,808, $1,815, $1,822, $1,827, $1,840
Key Supports: $1,792, $1,785, $1,776, $1,768, $1,762
Take a look and do trade wisely!