As wee analyse the market, see that, GOLD has left the NFP shock behind and get to its natural levels after that.
First of all, lets look at daily chart to see the big picture of GOLD s actions. As you see, the 200 days EMA has been a resistance to GOLD at 1225. 50% level of fibonacci retracement is also at 1225 for the last down trend. So 1225 is very very important level to clear the direction of the price. Traders should be careful at that level. During the last 2 days, GOLD tried to hit 1225 but returned down from 1224.50 and tested 1207. During these actions 1207 and 1206.64 became a support level. So short term strategy should be trading between 1207 – 1225.
As we analyse the 4Hrs chart, again we get that 1225 would be important for today. Before 1225, 1215-1216 is the first resistance for buyers. Also 1207 is a good support, we can call a buy above that level. Some indicators like RSI will begin to signal a retracement down to 1208 soon. Because of that, second try of 1225 may not be successful for this time. Again be careful at 1225, there may be a BULL TRAP at that level. To be sure for breaking of 1225, the price should stay over it for 2 days.
The 1Hr chart tells us that, there is a fight around 50 Hrs EMA. Currently it is over that level but has not much power to stay there. Short term traders should enter in position when the price leaves 50 Hrs EMA. Again 1207-1216-1225 bands are good levels of trading. Long termers should wait 1207 or 1225 breakage.
Trade safe and use SL in every trade.