Gold prices prepare to jump ahead of nonfarm payrolls [Video]
|Gold prices inched up 0.2% during the London session while investors are waiting for Nonfarm Payrolls data later. On the daily chart, Gold (XAUUSD) had a strong up day yesterday, which could be a signal to challenge the higher levels.
On H1 timeframe, I am looking for a pullback to the demand zone formed yesterday as a test, as highlighted in yellow circle. A reversal from this demand zone could form a long entry for a swing trade to the upside. The strategy is based on identifying the supply and demand zone for swing trading as shown below:
Below are the key parameters for Gold potential long setup for trading session on 8 May 2020, with a potential reward to risk ratio of 3.6.
Entry: long limit order at 1700
Stop loss: 1691
Take profit: 1733
XAUUSD — potential trade setup for short term swing trading
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