Current situation look unfriendly for Gold / Decline is possible

Technical analysis: As expected yesterday's U.S. session Sell-off worked perfectly on the #1,927.80 (Spot prices as always on my focus) Support as not only did Gold hit the #1,905.80 Target, but also yesterday's session Lower zone of Keltner Channel on the Daily chart. Much of this move had to do with the RSI near the Resistance and as discussed, much needed Technical correction of Higher High extension. Fundamental side was giving boost to DX, but not enough to engage more serious recovery. As a result Hourly 4 turned again marginally Bearish and highly Volatile, and as long as the Daily chart remains Bullish, I am following the simple plan of only committing Medium-term breakouts. Like I mentioned on the previous post, the Keltner Channel in between is my Short-term instrument to monitor. It is important to note that yesterday’s session strong decline was Bought back instantly and Daily chart Channel Up got well preserved, and Technically it could provide me with a steady Buying order early on U.S. session, but Buying current landscape on Gold is truly dangerous. I will have more information with E.U. Hourly 4 set of candles and will update if Price-action does something different.


Short-term: Gold is on a strong pullback and even though the Bullish trend isn't invalidated yet, I should be cautious with entry and Stop-loss selection throughout today’s session. It appears that Friday's Nonfarm Payrolls (pre-market) are giving a boost to the DX (small Hourly 4 recovery), which should apply Selling pressure on Gold. However, Technically the Hourly 4 #1,907.80 is the first major Support, which so far (during today's session) hasn't been tested.


My position: Even though that Gold is Bullish on Long-term, Gold gradually but partially recovered from current decline near the #2 Month Top, but didn't engaged more serious recovery as I cannot rule out current Technical picture on Gold as weak / and #1,882.80 Lower Low zone in extension. I am ready with my Selling orders to pursue #1,900.80 first, and if broken, I will re-Sell Gold towards #1,882.80. However, my Stop-loss (exit) will be placed near, and if Resistance gets broken, I won't hesitate to change my strategy and Buy Gold towards #1,941.80. Current Technical picture looks encouraging for Sellers.