Gold plunges aggressively and looks unstoppable on the Daily chart. Goes down as the USD rallies after the US data release, the greenback has finally received a helping hand from the United States economy.

Price is very close to hit a major downside obstacle, actually, we have more support levels in the near term, we’ll see how will react. The yellow metal is located in the buyer’s territory despite the current drop, only a drop somewhere below the 1241 level will signal a sharp drop, but is less likely to happen because the USD bulls could still be disappointed if the Federal Reserve will delay hiking the rate again. The US data is expected to come in mixed in the upcoming period, so the Federal Funds Rate will remain unchanged at least until December.

The Non-Farm Employment Change was reported at 209K, much higher versus the 182K estimate, the Average Hourly Earnings rose by 0.3%, matching expectations and the 0.3% growth in the former reading period, while the Unemployment Rate decreased from 4.4% to 4.3%  in July, matching expectations. The US trade deficit has decreased from 46.4B to 43.6B, has come in better versus the 43.9B estimate.

Gold dropped and is trading near the first warning line (WL1) of the major ascending pitchfork, maintains a bullish perspective as long as is trading above this dynamic support. Continues to move in range on the Daily chart, is trapped between the 50% and the 23.6% retracement level, is trading near the half of this sideways movement.  Technically was expected to increase further after the breakout from the major descending pitchfork’s body and after jump much above the outside sliding parallel line. The next upside target is at the 150% Fibonacci line (descending dotted line), was expected to reach also the 38.2% retracement level, so only a breakout above these levels will confirm a larger increase in the upcoming months. While another breakdown below the WL1 and below the ascending sliding line (SL) will open the door for a major drop.