Trading Signals for GOLD (XAU/USD) on October 6-9, 2023: buy above $ 1,812 (2/8 Murray – rebound)
October 6, 2023 6:23 pm
Early in the American session, gold (XAU/USD) was trading around 1,816.34. A few minutes ago, the data from the United States about employment in the private sector was published. This caused a fall to a new monthly low for now around 1,810.40.
The government Non-Farm Payrolls (NFPs) report for September exceeded expectations and reached the number of 336,000 new jobs. The news caused a sharp drop in gold but due to the extremely oversold level, gold is expected to rebound above 1,812 (2/8 Murray).
On the 4-hour chart, we can see that gold is trading within a bearish trend channel formed on October 3. A sharp break above 1,822 (21 SMA) is likely to follow, which supports a bullish outlook.
If this scenario occurs, XAU/USD could climb to 1,835, the high of October 3, and finally to 1,843 (3/8 Murray). From this level, a technical correction is expected and it could be a good point to sell.
On the other hand, in case gold falls and consolidates below 1,812, it could quickly reach the psychological level of 1,800 but technically, it is showing signs of exhaustion. So, any retracement could favor an upward movement.
Our trading plan for the next few hours is to buy gold above 1,812 with targets at 1,822 and 1,835. A daily close above the 21 SMA could open the possibilities for an extension of the bullish movement for next week and the instrument could reach 1,843 and even the 200 EMA located at 1,893.
The material has been provided by InstaForex Company – www.instaforex.com
Early in the American session, gold (XAU/USD) was trading around 1,816.34. A few minutes ago, the data from the United States about employment in the private sector was published. This caused a fall to a new monthly low for now around 1,810.40.
The government Non-Farm Payrolls (NFPs) report for September exceeded expectations and reached the number of 336,000 new jobs. The news caused a sharp drop in gold but due to the extremely oversold level, gold is expected to rebound above 1,812 (2/8 Murray).
On the 4-hour chart, we can see that gold is trading within a bearish trend channel formed on October 3. A sharp break above 1,822 (21 SMA) is likely to follow, which supports a bullish outlook.
If this scenario occurs, XAU/USD could climb to 1,835, the high of October 3, and finally to 1,843 (3/8 Murray). From this level, a technical correction is expected and it could be a good point to sell.
On the other hand, in case gold falls and consolidates below 1,812, it could quickly reach the psychological level of 1,800 but technically, it is showing signs of exhaustion. So, any retracement could favor an upward movement.
Our trading plan for the next few hours is to buy gold above 1,812 with targets at 1,822 and 1,835. A daily close above the 21 SMA could open the possibilities for an extension of the bullish movement for next week and the instrument could reach 1,843 and even the 200 EMA located at 1,893.
The material has been provided by InstaForex Company – www.instaforex.com
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