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XAUUSD : Still Testing Support After Non Farm Payroll Data

(XAUUSD : 4 Hour Chart)

On the 4 hour chart, Gold was trading within a rising channel and broke down below the support trend line of the channel after the upbeat Non-Farm Payroll data. This is the first time in a month the pair went down below the 50 day SMA. The nearest support the commodity may find is at 1305.99 and rise. Official data showed that the total nonfarm payroll employment increased by 288K in June and the unemployment rate declined to 6.1% beating the economist’s expectation for an increase by 214K. Job gains were widespread, led by employment growth in professional and business services, retail trade, food services and drinking places and health care. 

Gold after declining below the support trend line again came back into the rising channel so there are chances that the commodity might continue to rise finding support from the support trend line but trading below the 50 day SMA for the first time in a month is giving some bearish outlook but that will also be for the short term as it might find support at 1305.99.