Markets finally break 200-day EMA
The US dollar tends to move against the gold market, so it is likely that we will see a rally in gold if we see further decline in the value of the greenback.
Gold markets rallied quite significantly during Thursday’s trading session to break through the 200-day EMA. The 200-day EMA has been a huge hurdle for buyers over the past two weeks, so the fact that we’re not only closing above the 200-day EMA, but also around $ 20 above, suggests as we take off on the rise. finally.
All other things being equal, the market appears to be able to hit the $ 1850 level and then maybe even the $ 1950 level. That being said, the market is going to be paying close attention to the US dollar, and Friday, of course, is the non-farm payroll announcement, and that will obviously move the US dollar. The US dollar tends to move against the gold market, so it is likely that we will see a rally in gold if we see further decline in the value of the greenback.
One thing I think you can count on is significant volatility in Friday’s trading session as the US dollar will jump causing the opposite reaction here. It seems very bullish at the moment, so I think if we get a pullback it’s more likely than not that we will see buyers on some type of value proposition, especially near the $ 1,800 level. On the other hand, we could break above the top of the candlestick, then we will start making this move much higher.
If we were to turn around and fall below the $ 1750 level, which seems much less likely at this point, then that would be an extremely bad sign and could push this market down, but I think we’ve finally seen enough momentum to confirm. the trend reversal, so it’s likely that we would see a lot of long-term buyers getting involved. It is also very important to pay attention to the size of the candlestick as it is much larger than most of the other recent candlesticks that we have seen. In general, I think it’s likely that eventually value hunters and maybe even short sellers will have to go up. The market has been a bit of a channel so I think it’s likely to continue this overall action.