FX.co ★ Technical analysis of gold for May 02, 2014

Today's U.S. non-farm payrolls data will be watched closely by traders. The consensus estimate for today's figure stands at 215,000.

Review- UNEMPLOYMENT CLAIMS

In the week ended April 26, the advance figure for seasonally adjusted initial claims was 344,000, an increase of 14,000 from the previous week's revised level. The previous week's level was revised up by 1,000 from 329,000 to 330,000. The 4-week moving average was 320,000, an increase of 3,000 from the previous week's revised average. The previous week's average was revised up by 250 from 316,750 to 317,000.

Technical view-

The metal is struggling to sustain above the $1,285 levels. As of now the metal opened today's trades on a bearish note. We expect the metal to pull back to $1,290 and $1,292 levels in the evening session or BTST. On the down side the metal has taken support at $1,277 levels. A day close below the level $1,277, the next bearish wave will hit the metal badly for $1,262, $1,250, $1,240 and in the least case $1,220 or $1,213 levels. If this week closes above the $1,277, we will re-analyze the charts and will update the levels on Monday. It remains in the range bound within its limits.

For intraday perspective, the trading pattern is set in $1,277-$1,290, a break out either side will give a little room. On the down side, if the metal breaks $1,277, it will drift to $1,272, $1,268 and $1,262 levels. On the upside, it can shoot up to $1,292, $1,295 and $1,300 if sustained above $1,290 levels. RSI in the daily and the H4 chart has been indicating a sell call with some ups and downs.

For hourly traders, the trading pattern is set between $1,283-$1,285. Below $1,283, it looks weak for $1,281, $1,280 and $1,277.

Safe traders-

1. Buy above $1,285 for targets at $1,290.20, $1,292,$1,295, $1,297.60 and $1,301 levels. (above $1,290.20 only next targets will be achieved).

2. Sell below $1,277 for targets at $1,272.70, $1,268, $1,262 and $1,260 levels. (lower levels will come only below $1,268).

joseph.nz@mail2.instafxgroup.com