Crucial area for Gold ahead of a busy data driven week

With FOMC, NFP, manufacturing PMI and other red folder news, we can expect some volatility coming into the end of the week. We have rallied up this morning on the London open and cleared last week's clear liquidity. From a technical perspective we remain firmly bearish however with tensions building in the Middle East, this is the type of news that can send gold to the roof, as we have seen several occasions in the past couple of years. Therefore we are expecting the final line in the sand of $2045 - 2050 to hold for the bearish theme to resume. If we burst through here then bearish bets are off for the meantime. Currently at 2039 the market is offering a reasonable bearish entry with an opportunity to add in around 2045 if we push higher.

The weekly open remains untested still with the high impact news coming ahead, it may act as a magnet/ target for any flash sell offs.

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