Trade fundamentals explained.
The XAU/USD which is the Gold pair in Forex terms. Gold vs. US Dollar. Today this trading pair shoot up on the news of the US NFP that is the Non Farm Employment Change number. The forecast was 201K jobs, previous it was at 173K but today they revised last number down to 136k then together came the new number out as 142K so this was terrible news for the US Dollar. And it made Gold shoot up in value as it acted as a save haven trading asset again.
Trade technicals explained.
The pair XAU/USD hovered before news above the Weekly Support 2 at the 1106 level. I noticed this, there also was a bullish pinbar formed at this Weekly and Daily support. Here price paused before news. But the Risk vs. Reward was very good on this setup to trade it before news. Because when news comes out, it moves so fast you cannot catch this, or have a worse price. Of course it could have taken out the calculated risk, but price went my way and shoot up a nice 1100 pips which I set as a target on the 50% retracement of the last move up, at the 1120 price level. It went all the way up to the 38.2 retracement 1132 and slight above that to the 1140 level.
Next week I will continue to look to trade this Gold pair. Join my webinars if you want to have updates or follow TradeReact on social media. Thanks for your interest and have a great weekend!
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