At the end of the European session, gold (XAU/USD) is trading at the level of 1,697. I can see the Murray 2/8 meme as a strong support for gold. If the asset consolidates above this level, we can expect an acceleration to the top of the descending trend channel that has been developing since August 22.
Faith fell during the US session for XAU/USD to a low of 1,688.65, as initial claims for unemployment benefits in the US reached their highest level since April. Another factor that could put pressure on gold is the assumption that the FED will raise the annual rate by 0.75% at its fifth, i.e., meeting.
If gold breaks through 1,687, it could reach the 2021 lows of 1,675. A break above 1,702 and consolidation above the descending trend channel would reduce downward pressure.
XAU/USD is trading above the Murray 2/8 line (1,687) and below the 21 SMA, which is located at the price of 1,717. According to the forecast, the price should trade in this range in the coming hours, bad on US employment data .
Nonfarm payrolls could add strong volatility to the market. Gold is expected to break through the 3/8 Murray line (1,718) in five hours and settle above it. If it hits above this level, it could mean acceleration of growth and reaching the top of the descending trend channel that has been forming since the beginning of August , piblin equal to 1,730.
Since August 22, the eagle mrn b indicator has signaled and shows a positive divergence. If it settles above this level in the next few hours, gold could have two positive signals and the precious metal could reach the 200 EMA at 1,755.
If gold breaks through 1,685 and consolidates below it, we should avoid buying, because most likely the bear cycle will start again and the price could reach the psychological level of 1,650.
If, on the other hand, gold trades above the Murray 2/8 line, it will be an opportunity to buy with prices at 1,717, 1,735 and Murray 4/8 around the price of 1,750.
Author of the link: Tm Instaforex
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