Riding the NFP: Is Gold Set for a 400 Pips Rally?

Dec 8, 2023

XAUUSD traded within a 200-pip range throughout yesterday, establishing a distinct support at 2020 and a ceiling around the 2040 zone.

The jobless claims failed to provide a clear directional cue. Following an initial dip to the support level, Gold swiftly rebounded, settling around the familiar 2030 mark.

Maintaining the stance shared earlier this week, my outlook remains bullish, contingent upon the integrity of the 2010-2020 zone and the absence of a daily close below this range.

In yesterday's post, I highlighted a potential inverted head and shoulders pattern on a lower timeframe. The pattern is now clearer, with the right shoulder forming an accumulation range. A breakout above the pattern's neckline, aligning neatly with an old horizontal support line, has the potential to trigger a robust ascent.

Considering the pattern's target of 300 pips, I anticipate an extension beyond this level to reach the 2070 old ATH zone and Monday's congestion zone.

Dec 8, 2023

Note

Although I expected a break above range's resistance, it seems that the break will be to the downside.
The trend line is already broken