FxWirePro: XAU/USD downside capped by ichimoku cloud, market eyes U.S NFP data

• Gold recovered sharply after hitting low of $1256 yesterday. The yellow metal jumped almost $14 from the yesterday low. It is currently trading around $1268.49.
   
• US Dollar index hits fresh 16 month low of 92.55 and slightly recovered till 93.04 from that level. Market awaits U.S NFP data which help investor to assess the strength of the economy. U.S economy is expected to add 182K jobs in month of Jul .Any positive surprise in the data will also not have much impact on U.S dollar. The chances of fed rate hike has diminished as political uncertainties in the white house.  Minor jump can be seen in U.S Dollar index only if it breaks above 93.40 (10- day MA) and break above targets 94.10/95.
   
• Technically gold showing minor hurdle at $1274 high made on Aug 1st 2017 and any break above confirms bullish continuation.
   
• Gold’s near term support is around $1255 (cloud bottom) and break below will drag the commodity down till $1247 (89- day EMA)/$1243 (Jul 26th low).The yellow metal should break below $1195 for major trend reversal.
   
• On the higher side, near term resistance is around $1275 and any break above will take the commodity till $1295/$1337.

It is good to buy on dips around $1258 with SL around $1250 for the TP of $1275/$1295.