Technical Analysis: Gold bears brace for $1,765 on NFP day
Not only a downside break of an ascending trend line from March but a daily closing below 200-day EMA and January low also favor gold bears on Friday. Although the pre-NFP trading dullness triggered consolidation from a nine-week low, the yellow metal keeps the previous day’s breakdown of the key technical levels. As a result, the bullion sellers currently eye a horizontal area including March 2020 top and November 2020 high around $1,765. It should, however, be noted that the quote’s further weakness past-$1,765 will attack the $1,700 threshold while eyeing the June 2020 bottom surrounding $1,695.
Meanwhile, an upside clearance of 200-day SMA, at $1,821 now, will target the previous support line from March 20, 2020, around $1,845-50. It’s worth mentioning that the double tops marked in January near $1,875 also become the key hurdle to watch for gold buyers during the recovery moves, which are less anticipated. Overall, gold traders should keep their bearish bias but a fresh position can wait for the US employment data for January, up for publishing around 13:30 GMT.