- The US and Canadian data should move the rate today.
- Its failure to retest the broken uptrend line signaled exhausted buyers.
- Taking out the minor uptrend line activates more declines.
The gold price is trading in the green at $1,989 at the time of writing. The Greenback’s depreciation versus the other major currencies gave a helping hand to the yellow metal.
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DXY’s deeper drop helps the XAU/USD buyers to drag it towards new highs. The Greenback remains sluggish after the FOMC. Yesterday, the BOE left its monetary policy unchanged. The USD took a hit from the Unemployment Claims indicator, which came in at 217K the previous week versus the 210K estimated and above 212K in the last week.
Today, the US and the Canadian data should bring life to XAU/USD. The US Non-Farm Payrolls are expected to be 178K in October versus 336K in September. Average Hourly Earnings may report a 0.3% growth, the Unemployment Rate could remain at 3.8%, while ISM Services PMI is expected to drop from 53.6 points to 53.0 points.
Furthermore, the Canadian Unemployment Rate could jump from 5.5% to 5.6%, while Employment Change is expected at 25.7K, far below 63.8K in September. Better-than-expected data could force the yellow metal to turn to the downside again.
Gold Price Technical Analysis: Minor Bearish Pattern
As you can see on the hourly chart, the XAU/USD tried to rebound after its strong sell-off. It has failed to come back to test the Rising Wedge’s support (uptrend line), signaling exhausted buyers. In the short term, a bounce back was natural.
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It remains to see how it reacts after reaching the descending pitchfork’s upper median line (uml) and the weekly pivot point of $1,989. These represent strong upside obstacles. Testing and retesting the resistance levels, registering only false breakouts may announce a new sell-off. Taking out the minor uptrend line and making a new lower low activates a deeper drop. After closing above the $1,992 static resistance, an upside continuation could be confirmed.
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