XAU/USD: gold slowed growth

January 11, 2016

Current trend

In the end of last week, the price of gold fell amid strengthening after the publication of strong labour market data US Dollar. The Nonfarm Payrolls grew from 252 to 292 thousands while economists predicted a fall to 200 thousands. The Unemployment Rate remained unchanged at 5% below which it last time declined in 2007. At the same time, Average Hourly Earnings did not match the expectations as it came out unchanged, instead of a predicted 0.2% growth.

Support and resistance

Bollinger Bands on the daily chart is moving up while the price range is widening. At the same time, the indicator has formed a signal for correctional decline. MACD is growing and giving a strong buy signal. Stochastic is in the overbought zone and trying to turn down.

The indicators recommend waiting for clearer trading signals.

Support levels: 1101.05 (local low), 1095.53, 1088.66, 1083.26 (6 January low), 1081.47, 1078.17, 1074.45, 1070.00.

Resistance levels: 1105.50 (local high), 1110.00, 1115.70 (4 November high), 1121.11, 1127.80, 1132.52.

Trading tips

Long positions can be opened after the breakout of the level of 1118.83 (with the appropriate indicators signals) with the target at 1124.30 and stop-loss at 1117.00. Validity – 3-4 days.

Short positions can be opened after the price rebound from the level of 1094.00 with the target at 1084.00 and stop-loss at 1100.00. Validity – 2-3 days.

Publication source
LiteForex information  LiteForex reviews

September 23, 2016
Risk rating
The market is in need of a new narrative. The Fed meeting in December is too far off and for now, the US election is not something that entices excitement. With central banks on hold, markets are pushing the envelope in terms of risk...
September 23, 2016
Greenback regains some ground
On Friday, the evergreen buck regained some ground against other key currencies, as markets kept digesting the Fed’s latest policy decision...
September 23, 2016
Dollar rebounds slightly as precious metals are in a hot zone
The US Dollar rebounds after a substantial selloff led by the FOMC decision to leave the interest rate unchanged. The Dollar index, which tracks the US currency against major peers, recoiled with support at a 95.00 level on Thursday, adding 0.05% to the 95.36 price in the early Friday session...

Grand Capital Rating
HYCM Rating
HotForex Rating
Tickmill Rating
FBS Rating
Orbex Rating

Empire Option Rating
Porter Finance Rating
Grand Option Rating
OptionBit Rating
TopOption Rating
Banc De Binary Rating