XAU/USD: gold is falling

September 29, 2015

Current trend

On Monday, the price of gold significantly fell despite a weakening in the USD. At the same time, commentaries of Fed officials point out that the interest rate increase is going to happen in the near future thus increasing demand for the Dollar. Last Thursday, the Fed Chair Janet Yellen confirmed that the regulator is going to continue with its monetary policy plans. Furthermore, at yesterday’s press conference one of the Fed members William Dudley stated that the rate could be increased on the October meeting, though experts consider the chances of that as very small.

Support and resistance

Bollinger Bands on the daily chart continues with a moderate growth, while the price range is narrowing. The indicator has formed a sell signal. MACD is falling. Stochastic is in the middle of its range and maintains the downward movement.

The indicators recommend short positions.

Support levels: 1127.80 (28 September low), 1121.11 (22 September low), 1115.70, 1110.00, 1105.50, 1101.05, 1098.50 (11 September low).

Resistance levels: 1134.30 (local high), 1141.47 (18 September high), 1147.66, 1156.40 (24 September high).

Trading tips

Short positions can be opened after the breakdown of the level of 1120.00 with the target at 1110.55 and stop-loss at 1128.70. Validity – 1-3 days.

Long positions can be opened after the breakout of the level of 1134.30 with the target at 1141.47 and stop-loss at 1129.00. Validity – 2-4 days.

Publication source
LiteForex information  LiteForex reviews

February 20, 2017
What is the next target for the UK?
The dramatical event looms large for Pound, which can sweep the British currency off its feet – the official exit from the EU. The Prime Minister Theresa May said that the process can be initiated as close as possible to the EU summit in Brussels, scheduled to take place on 9-10 March...
February 20, 2017
Gold remained around its recent peaks
Despite the overall positive outlook the yellow metal seems to be having problems with its further advance. Inability to move higher may return some selling pressure to markets. Sellers’ profit targets lie at 1230 and 1220 levels...
February 17, 2017
NZD looks to weaken
The New Zealand dollar has found itself under pressure in recent days as the market has started to hedge a little while it waits on the next steps for the US economy...

FIBO Group Rating
 FXTM Rating
Cms Trader Rating
FOREX.com Rating
FX Giants Rating
NPBFX Rating

Dragon Options Rating
24option Rating
OptionRally Rating
99Binary Rating
Empire Option Rating
OptionBit Rating