Safe Haven Gold Retraces Before the U.S. ADP Nonfarm

What’s up, traders.
Recalling our earlier update July 5 – Economic event report, the market is trading the dominant risk-off sentiment. This morning gold is trading in a narrow range, after hitting a one-week high in the previous session, amid an easing dollar as markets await the U.S. Federal Reserve’s June policy meeting minutes. More specifically, investors’ focus stays on the U.S. ADP employment change.
Check out today’s trade plan…

Technical Overview – 61.8% Retracement

As you know, the Gold broke out of the symmetric triangle pattern to test the intra-day support at $1,252. But at the same time, the precious metal has gone oversold. Despite the strong bullish sentiments, we can’t enter the buying position until market retraces back to 50% retracement at$1,249 or 61.8% retracement at $1,246.

Support Resistance
1252 1258
1250 1260
1247 1265
Key Trading Level: 1256

Besides technical, you should watch the ADP non-farm employment change. The ADP figure is due at 13:15 (GMT). Economists are expecting a smaller increase of 190k vs. the previous figure of 178k. The ADP figures mostly correlate with the NFP data on Friday, therefore, the dollar is likely to stay supported on sentiments. Let’s see the data.

Gold // XAUUSD – Trading Idea
I will wait for gold to come down to $1,249/47 before taking any buying position. On the upper side, $1,256 is a crucial level to open sell. Good luck!