Listen to the market mood for the coming session:
The market is in a firm risk-off mood due to ongoing tensions between Iran and the US following the killing of a top Iranian general by a US drone attack last week. With a very light data calendar ahead today the market’s focus will be firmly on risk sentiment.
As a result, watch out for risk sentiment moves:
- Risk-off = gold buyers, JPY and CHF buyers, AUD, NZD, and CAD sellers
- Risk-on = JPY and CHF sellers, and AUD, NZD, and CAD buyers
At the time of writing, the risk sentiment remains firmly off, so I am expecting gold buyers on retracements at the following technical levels marked on the chart above.