#XAUUSD @ 1699.29 Gold price is facing barricades around $1,700.00 as investors await US NFP. (Pivot Orderbook analysis)

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• Gold price is facing barricades around $1,700.00 as investors await US NFP.
• The DXY may face the wrath amid lower consensus for the US NFP.
• The odds of a consecutive 75 bps rate hike by the Fed will remain intact.

The pair currently trades last at 1699.29.

The previous day high was 1711.49 while the previous day low was 1688.92. The daily 38.2% Fib levels comes at 1697.54, expected to provide support. Similarly, the daily 61.8% fib level is at 1702.87, expected to provide resistance.

Gold price (XAU/USD) is advancing gradually higher as the US dollar index (DXY) is displaying a subdued performance ahead of the US Nonfarm Payroll (NFP) data. The precious metal is struggling to cross the psychological resistance of $1,700.00 as investors are awaiting the release of the US employment data for fresh impetus.

On Thursday, gold prices witnessed a steep fall after the release of the higher-than-expected US ISM Manufacturing PMI data. The economic data was released at 52.8, in line with the prior release but higher than the forecasts of 52.0. Investors were expecting a fall in the volume of manufacturing activities as the corporate sector has postponed expansion plans led by the unavailability of cheaper money for disposal. However, a surprise upside in the Manufacturing PMI drove the DXY close to the critical resistance of 110.00.

Ahead of the US NFP, the DXY could face selling pressure as a consensus for employment generation is lower than the prior release. The US NFP is expected to land at 300k, lower than the prior release of 528k. A downbeat release may halt the DXY’s dream rally and will strengthen the gold prices. However, the odds of a consecutive 75 basis points (bps) rate hike by the Federal Reserve (Fed) will remain stable.

Gold prices are declining firmly towards the monthly lows placed at $1,680.91, recorded on July 21. The 20-period Exponential Moving Average (EMA) at $1,711.61 is declining, which adds to the downside filters.

Also, the Relative Strength Index (RSI) (14) is oscillating in the bearish range of 20.00-40.00, which indicates a continuation of downside momentum.

Technical Levels: Supports and Resistances

XAUUSD currently trading at 1699.14 at the time of writing. Pair opened at 1697.5 and is trading with a change of 0.1 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 1758.43, 50 SMA 1756.56, 100 SMA @ 1810.4 and 200 SMA @ 1835.59.

The previous day high was 1711.49 while the previous day low was 1688.92. The daily 38.2% Fib levels comes at 1697.54, expected to provide support. Similarly, the daily 61.8% fib level is at 1702.87, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1687.12, 1676.73, 1664.55
• Pivot resistance is noted at 1709.69, 1721.87, 1732.26

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