FxWirePro: XAU/USD forms Bullish Gartley Pattern, good to buy on dips

Harmonic pattern formed- Bullish Gartley

Potential Reversal Zone (PRZ) - $1243

• Gold declined sharply from the high from $1270 made on Aug 4th after better than expected U.S jobs data. The yellow metal declined almost $16 from the Friday high. It is currently trading around $1257.47.
   
• U.S economy has added 209K jobs this month compared to forecast of 183K and unemployment rate was at 4.3% 16 –year low. The strong rise in U.S jobs together with decline in unemployment rate may increase the chance of rate hike by Fed.US. Dollar index has shown massive recovery  after hitting low of  Minor jump can be seen in U.S Dollar index only if it breaks above 94.17 (21- day EMA) and break above targets 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 $1250 with SL around $1243 for the TP of $1260/$1275.