Gold completes 61.8% Fibo retracment – Is it time to place a buy? - Forex News by FX Leaders

Gold completes 61.8% Fibo retracment – Is it time to place a buy?

Posted Thursday, October 4, 2018 by
Arslan Butt • 1 min read

What’s up, fellas.

The precious metal gold came under selling pressure after surprising economic events from the United States. The Institute for Supply Management’s (ISM) non-manufacturing activity index jumped 3.1 points to 61.6 last month, the highest reading since August 1997. Moreover, the ADP employment report also showed private payrolls surged by 230K jobs in September, the largest gain since February.

Here’s a quick technical outlook:

  • Gold has priced in the data and has completed 61.8% retracement at $1,196.
  • 50 periods EMA is supporting the metal at $1,196.
  • The doji candle above $1,196 is signaling a neutral sentiment of investors.
  • The RSI is coming out of an oversold zone, which may drive buying in gold.

XAU/USD – Gold Trade Plan

Considering this, we have opened a forex trading signal to buy gold above $1,196 with a stop below $1,193 and take profit at $1,203. Good luck!

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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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