The first time claims for the US unemployment benefits fell last week to a three month low, but remained little unchanged from a year ago. It fell more than expected and hit a three month low. It’s a good sign of labor market. Initial jobless claims totalled 323,000 in the week ending March 1, a decline of 26,000 from the prior week’s revised reading of 349,000. Traders keep an eye on today’s highly anticipated non-farm payroll data. The European central bank kept its interest rate on hold.
Technical view-
Gold is in overbought conditions and negative divergence in the daily chart. At the upper end of a rising channel it could be due for a correction. The 20dma is at $1,315 and rising; it could move up to $1,320 as the first support level and 38.2% retracement at $1,310 as the second potential support and a target. Holding one of these levels the correction should complete. A move below the level of $1,328.0 opens major downside targets. If price breaks out on the upper side above $1,355.0, we will see $1,362.0 and $1,372.0 in intraday only.
Positional- sell on rallies. $1,355.0 neckline resistance
S1 $1,328.0 R1 $1,355.0
S2 $1,318.0 R2 $1,362.0
S3 $1,310.0 R3 $1,395.0.
A day close above the level of $1,355.0, we will see $1,362.0, $1,375.0, $1,395.0, $1,420.0, and $1,440.0. Before further up move, the price will come down first towards $1328.0, $1,310.0.
The material has been provided by InstaForex Company – www.instaforex.com
The first time claims for the US unemployment benefits fell last week to a three month low, but remained
little unchanged from a year ago. It fell more than expected and hit a three
month low. It’s a good sign of labor market. Initial jobless claims totalled
323,000 in the week ending March 1, a decline of 26,000 from the prior week’s
revised reading of 349,000. Traders keep an eye on today’s highly anticipated non-farm
payroll data. The European central bank kept its interest rate on hold.
Technical
view-
Gold
is in overbought conditions and negative divergence in the daily chart. At the upper end of a rising channel it could be due
for a correction. The 20dma is at $1,315 and rising; it could move up to $1,320 as the first support level and 38.2% retracement at $1,310 as the second potential
support and a target. Holding one of these levels the correction should
complete. A move below the level of $1,328.0 opens major downside targets. If price breaks out on the upper
side above $1,355.0, we will see $1,362.0 and $1,372.0 in intraday only.
Positional- sell on rallies. $1,355.0 neckline
resistance
S1 $1,328.0 R1 $1,355.0
S2 $1,318.0 R2 $1,362.0
S3 $1,310.0 R3 $1,395.0.
A
day close above the level of $1,355.0, we will see $1,362.0, $1,375.0, $1,395.0,
$1,420.0, and $1,440.0. Before further up move, the price will come down first
towards $1328.0, $1,310.0.
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