The bullion market has traded heavily bearish on the back of a better than expected Nonfarm payrolls number. As discussed in the previous update, we may still encounter the echoes of the better than expected U.S. economic events that were released on Friday.

Forex junkies are likely to avoid placing major trades today since we are lacking major economic events. However, investors will focus on Fed Chair Janet Yellen's testimony on monetary policy along with the U.S. economic figures on inflation and retail sales released this Friday.

Being a gold trader, I'm really cautious of the FED's hawkish stance as it could drive gold down to a new multi-week low.

Gold – Daily Chart

Technically, gold is still consolidating below a double bottom support which has become a resistance level at $1217. It also managed to close above the major support level of $1204.

Although RSI and certain moving averages establish the downtrend, it's really hard to determine whether to risk selling or not as technically the metal needs to retrace back before further selling should be initiated. Let's wait for the U.S. economic events tomorrow. In the meantime, take a look at a quick trade idea with a tight stop loss to mitigate risk. Find our more about Trading Moving Averages – Forex Trading Strategy in order to make perfect trading decisions. 

Forex Trading Signal – Intraday

In the Asian session, we shared a signal to open a sell position below $1211 with a tight stop loss at $1214 and a take profit at $1208. Good Luck!