Gold has changed its tendency on the stronger than expected US Labor Market data. ADP Non-Farm Employment Change shows 216 000 employed people instead of 165 000 that expected. FOMC members says that US Labor Marker reached full employment. Gold established new lows from February 2016. Gold targets 1110,0 at the moment. If US data is going to be better than expected, XAU/USD will reach this level in the nearest future.
There is the uptrend on the Weekly chart as the price is above the MA55 balance line. Gold slows down its downtrend and starts a correction according to our expectations. We think that the upside tendency is going to accelerate.
There is the downtrend on the Hourly chart as the MA-channel goes downwards and the price is below the MA55 balance line. We advise to open short trades from the MA55 balance line. Place stop losses above the curve.SILVER (XAGUSD)
Long trades failed to bring profit. We can see that precious metals have changed their trend and moods. US Labor Market data accompanied with FOMC members comments exert pressure on Silver and Gold. We think that it is time to look for short trades only.
There is no trend on the Weekly chart as the price is close to the MA55 balance line. There was a doji last week and the currency pair is able to grow in the nearest future.
The downtrend is in progress on the Hourly chart as the MA-channel goes downwards and the price is below the MA55 balance line. We advise to open short trades from the MA55 balance line area or broken through trendline. Place stop losses above those indicators.