The video discusses the market analysis of gold and the dollar in anticipation of the US non-farm payrolls report. The market is waiting for data to determine if the Federal Reserve will tighten its monetary policy. The video analyzes the charts of gold and the dollar and provides potential trading opportunities. The sentiment meter shows that 68% of retail traders are on the short side, and the market is currently unstable, requiring flexible trading styles.

Analyzing the Market: Gold Slips on Firmer Dollar Ahead of US Non-Farm Payrolls Report

Introduction

The Foreign channel on YouTube offers regular market analysis to subscribers. In this video, the presenter provides a live analysis of the gold market and the USD/DXY using chart patterns and technical indicators. The analysis covers the market situation at the time of the video, the likely impact of the U.S non-farm payrolls report, and trading opportunities based on market trends and patterns.

Market Situation

The presenter starts the analysis by showing the Warner chart of gold USD and notes that gold prices fell due to a stronger Dollar ahead of the awaited US non-farm payrolls report. The report was crucial for determining the next interest rate hike by the Federal Reserve.

The video’s focus is on the Forex market, and the presenter notes that US private employers hired far fewer workers than expected in March, suggesting the labor market was cooling. Furthermore, the presenter observes that the USD/DXY is showing a recovery after breaking a support level, and there is a wedge pattern on the chart. The analysis suggests the market might show some upside after the NFP report as the charts speak before the news.

Gold Chart Analysis

The presenter points to a chart of gold and notes that the precious metal is standing at the previous support level. The analysis suggests that the support level is not very strong, and temporary upside is possible. The video notes that there are three trading opportunities for buying positions at the support levels of 1996 and 1987. The video also notes that a sell position could be considered if the market breaks 2007 with volume as the market has already tested the level twice.

Trading Opportunities

The analysis of the gold and USD/DXY charts presents multiple trading opportunities based on the market’s conditions. The presenter notes that traders should be flexible with their trading style and adapt to the market’s changing conditions. The Forex sentiment meter shows that 68% of retail traders are short, and 31% are long, suggesting the market may move against the meter.

Impact of US Non-Farm Payroll Report

The presenter notes that the US non-farm payroll report would affect the market’s direction in the coming days. The report would impact the Canadian dollar and the US dollar, resulting in volatility during the event. The video advises traders to practice proper risk management and calculate position size precisely according to the SL and their capital.

Conclusion

The analysis of the gold and USD/DXY charts provides valuable insights for traders. The presenter shows the market’s situation, trading opportunities, and the probable impact of the US non-farm payroll report. The video advises traders to be flexible with their trading style and adapt to the market’s changing conditions. By practicing proper risk management, traders can mitigate financial risks and make informed trading decisions.