Happy Friday! Dear traders, We have exciting news for you. Today, we are providing technical analysis for the XAUUSD (Gold) market ahead of the release of US NFP. Let’s dive into the analysis without wasting any time.
XAUUSD Gold Market Technical Analysis by Guriforex Before US NFP Release:
On the 4-hour chart, XAUUSD is in a range pattern. This comes ahead of the US NFP release. Traders await the news of potential volatility. The market remains cautious before the report. The price recently tested the upper boundary of this range, aligning with the upper Bollinger Band. Additionally, the Williams %R indicator indicates overbought conditions, which raises the possibility of a reversal or consolidation before the next major move.
📊 Key Technical Insights
- Range Pattern: XAUUSD has been trading within its range. Traders are watching the upper boundary closely. They expect either a breakout or reversal. Market sentiment hinges on this key level.
- Bollinger Bands: The test of the upper Bollinger Band indicates possible overextension. This often signals a pullback or consolidation. Traders should watch for potential price reversals. The market may soon correct itself.
- %R Overbought: The %R oscillator is now in overbought territory, signaling potential weakness in upward momentum. This suggests a possible correction ahead. Traders should be cautious of a reversal.
🔍 Key Levels to Watch
- Bullish Scenario: If the price breaks above the 2525 resistance, the next target would be 2565, corresponding to the 161.8 Fibonacci extension. This breakout would suggest continued bullish momentum, especially if supported by positive NFP data.
- Bearish Scenario: However, if XAUUSD fails to break through the upper boundary and rebounds, the price could decline towards 2475, where support may come into play.
💬 Share Your Thoughts: What’s your outlook for XAUUSD (Gold) ahead of the NFP release? Will we see a breakout or a pullback? Share your thoughts and strategies in the comments below!