- Potential reversal Zone (PRZ) - $1198.
- The yellow metal hits one month low yesterday on account of better than expected ADP employment data. According to ADP and Moody analytics U.S economy has added 298K jobs in the private sector compared to forecast of 190K.
- Gold has broken major support at 100- day EMA around $1212 and declined till $1205.76. It is currently trading around $1205.50.
- Market awaits U.S Nonfarm payroll data which is to be released on Mar 10th 2017 for further direction. U.S economy is expected to add 185K compared to forecast of 227K. If jobs data comes weaker than expected less than 115K, EUR/USD will go up till 1.0680 level.
- US Dollar index is trading slightly near to minor top of 102.26 formed on Mar 2nd 2017.It is currently trading around 102.21.Any break above targets 102.95.
- On the higher side, $1212 (100- day MA) will be acting as next immediate resistance and any break above will target $1218 (23.6% retracement of $1263.95 and $1203.95)/$1224 (100- day EMA).
- The immediate support is around $1198 (Feb 1st low) and any close below targets $1193 (50% retracement of $1122 and $1263.95)/$1180.
It is good to sell on rallies around $1209-$1211 with SL around $1218 for the TP of $1198/$1193.
