Gold Trade Went Sideways – How to Trade NFP Today

Gold is stuck in a wide trading range as traders expect the US labour market figures today. Before the news release, Gold is expected...

Written by: Arslan Butt • Friday, March 9, 2018 • 1 min read

Gold is stuck in a wide trading range as traders expect the US labour market figures today. Before the news release, Gold is expected to continue trading sideways and will be exciting to trade on non-farm payroll figures. Check the trade plan.

Technical Outlook – EMA Crossover

You can see on the 4-hour chart that Gold is trading below the 20 & 50 periods EMA, meaning the trend for Gold is still bearish.

Gold - 4 - Hour Chart

Gold – 4 – Hour Chart

The leading indicators RSI and Stochastics, are stuck in the oversold zone (below 20), signifying the potential of a bullish reversal.

Is this not confusing? This happens when the economic calendar is packed with high impact economic events. Check out March 9 – Economic Events report for a detailed explanation.

Support Resistance

1319.77 1327.57

1317.37 1329.97

1313.47 1333.87

Key Trading Level: 1323.67

Gold – XAU/USD – Trading Idea

I’m going to wait for the NFP data before opening any position in Gold. The idea is to stay bearish below $1,322. Better-than-expected NFP results can push Gold to $1,309 and below it.

Good luck!

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ABOUT THE AUTHOR See More

Arslan Butt

Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.