Oct. 6: A Big Day for Gold Traders – NFP Ahead! - Forex News by FX Leaders

Oct. 6: A Big Day for Gold Traders – NFP Ahead!

Posted Friday, October 6, 2017 by
Arslan Butt • 1 min read

What’s up fellas. Our forex trading signal on Gold went inline with the forecast and closed at $1,279 target. I'm really excited to trade today as we have several high impact economic events from the U.S. and Canada. These surely are going to lead some serious fluctuations in the market today.

 

Gold // XAUUSD  – Technical View

So taking a buy position above $1,270 to target $1,279 was a good idea. Recalling my previous update, Oct. 5: Gold Hit's $1,280 Target – Ready for New Trade, we discussed the bullish setup on the daily timeframe. Undoubtedly, we made it our base to take a buying position. But yesterday during the New York trading sessions, the scenario changed a bit. The series of better-than-expected economic figures pointed to solid U.S. economic growth and supported a move higher in the Buck. Having said that, the yellow metal closed the day with a bearish engulfing candlestick pattern, which represents that the sellers are dominating in the market.

Gold - 4 - Hour Chart - Descending Triangle PatternGold – 4 – Hour Chart – Descending Triangle Pattern

On the hourly chart, I'm eyeing the descending triable pattern on Gold which supporting it at $1,267. These descending triangle patterns are meant to breakout downside and if this happens, Gold can target $1,261 and $1,257 today.

 

Gold // XAUUSD – Trading Plan

Today at 12:30 (GMT), we have the Non-farm payroll (NFP) which is expected to be poorer than previous data. The release is highly likely to cause some serious volatility in the market. So, it's better if we stay away from market ahead of the news. Just as a rough idea, I'm eyeing $1,272 and $1275 to stay in selling with a stop loss above $1,280 and take profit at $1,261 and $1,257. Good luck and trade with care!

 
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About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
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