In the last day of last week, commodities were closed to trade because of Easter. The bad NFP data could not effect GOLD price at friday because of this. As in the opening of this week, we saw the effect of NFP to the price and tested 1218.40. This rice strengthened the short term buyers already.
So what should our strategy be in this situation?
For a long time we are talking about 1306 and 1225. Gold will be under bearish pressure below this levels. But this view is for middle and long term traders. So lets look at intradays analysis for short term traders.
For the short terms analysis, as you see on the 4Hrs chart, GOLD is currently testing 1219 levels. Also RSI indicator is likely to get over 70 and it means a retracement is close. The first and most important support level seems to be 1208.50 so above this level rise will continue up to 1225. Traders should watch the price carefully between 1225 and 1208. Also US and European markets are closed and their opening will add some sense to the strategies.
Our view is; closing above 1219-1220 is a signal for GOLD to test 1225 tomorrow. With the data in our hand, we should see 1225, 1234 and 1240 this week. If GOLD does not get below 1208 in two days, all the way is open up to 1240.
Trade safe, use SL