The price has increased little today and has failed to jump above the week high from 1308 level, is struggling to increase further as the USDX has reached new lows, but has reached an important static resistance. The Gold could increase further if the US dollar will continue to decrease on the short term, technically the greenback is expected to drop further because the USDX is too heavy to be stopped, the index is searching for strong support, right now is trading right above the 97.00 psychological level and the next downside support is somewhere between the 96.70 – 96.55 levels, the index is expected to drop further, the greenback could drop as well while the Gold could take advantage on this situation.
The USD could drop further even if the United States economic figures have come in mixed, the Average Hourly Earnings have increased by 0.4% in October, exceeding the 0.3%, while the Unemployment Rate has decreased from 5.0% to 4.9%, matching expectations. The Trade Balance has increased from -40.5 to -36.4B in September, has come better than the -37.5B estimate, the data have come better, but wasn’t good enough to boost the USD.
The greenback is going down because the Non-Farm Employment Change has come worse than expected, the United States has added only 161K jobs in October, less than the 174K forecast. Th NFP has disappointed also because has come much below the 191K jobs from the previous reading period.
The price is pressuring the 1303 major static resistance, remains to see if we’ll have another false breakout, you can see that the price has failed to close above this level in the last two days. Maybe the rate will decrease a little to retest the broken median line (ML) before will increase further, the perspective is bullish as long as the rate is trading above the ML.
The medium term perspective remains bullish as long as the rate is trading inside the ascending pitchfork’s body, but the medium term upside movement will continue only if the rate will have enough energy to escape from the descending pitchfork’s body, should take out the upper median line (uml) if he wants to make new highs.