Gold potential buy entry: leveraging the bullish pullback in a bearish trend

The price of gold has been dropping significantly for the last couple of weeks mainly due to the strong bullish rally of the US dollar. The price will possibly further drop and retest February’s low of 1,805.366 before making a considerable pullback.

I am expecting the price of Gold will drop to 1,805.366 support level after the NFP data is published tomorrow. 1,805.366 is a major support level and demand area which will potentially push the price upside at least for a considerable correction to 1,876.50 resistance level.

The overall trend will possibly remain bearish in the long term and the price could further drop to 1,730.00 daily support in the next dip. The price of Gold is still above its average price and it will possibly keep dropping in the coming months.

The NFP(nonfarming payroll) data will be published tomorrow which could create massive volatility in the market.

If the data turns out positive it will push the price of gold down and the US dollar up and vice versa.

• Gold will possibly make a pullback to 1,876.5 after retesting the 1805 support level.  
• The price of gold has dropped significantly in the last two weeks and the 1805.5 support level is a good price for buy entry.
• Multiple take-profit levels have been added to secure profit along the way.
• The risk-to-reward ratio on this trade is 1:3.9.
• I would recommend watching this trade while the NFP data is published today
• Good luck!

The post Gold potential buy entry: leveraging the bullish pullback in a bearish trend appeared first on Invezz.