There are a few very important levels ahead of today's non-farm payroll report this afternoon. Generally, recent readings have caused a reasonable amount of volatility and today could be no exception. There are around 700K jobs expected to be added this time round and last month an increase of 559K was noted. At the moment the price is in the middle of the current consolidation at around $1781.1/oz.
Goldman Sachs has said "We estimate non-farm payrolls rose 750k in June. Coupled with very strong labor demand and continued progress on vaccinations and reopening, we believe job growth probably picked up further in the month. We estimate a two-tenths drop in the unemployment rate to 5.6%, reflecting a strong household employment gain but a further rise in the participation rate".
The 4-hour chart below shows the price has just broken out of a channel down type pattern. Having said that the wave high at $1795.6/oz is a very important hurdle. Beyond that, if the resistance is broken the next value area for the distribution above lies at the green shaded area near $1840/oz. It has to be noted that the psychological level at $1800/oz is a target for the bulls and the level also confluences with the 50% Fibonacci retracement which could be key.
On the downside, the consolidation low is holding at $1750.1/oz and this could be a form of support. The red area just below $1740/oz would be next up if the wave low is taken out.
Goldman Sachs has said "We estimate non-farm payrolls rose 750k in June. Coupled with very strong labor demand and continued progress on vaccinations and reopening, we believe job growth probably picked up further in the month. We estimate a two-tenths drop in the unemployment rate to 5.6%, reflecting a strong household employment gain but a further rise in the participation rate".
The 4-hour chart below shows the price has just broken out of a channel down type pattern. Having said that the wave high at $1795.6/oz is a very important hurdle. Beyond that, if the resistance is broken the next value area for the distribution above lies at the green shaded area near $1840/oz. It has to be noted that the psychological level at $1800/oz is a target for the bulls and the level also confluences with the 50% Fibonacci retracement which could be key.
On the downside, the consolidation low is holding at $1750.1/oz and this could be a form of support. The red area just below $1740/oz would be next up if the wave low is taken out.
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