Yesterday the price of gold significantly fell again.
The pair is under pressure amid approaching Fed meeting that will end tomorrow and when the regulator is expected to increase interest rates in the US. Markets evaluate the probability of the increase at over 80%. In addition, the pair is pressured by falling oil prices, which yesterday reached its 2008 lows.
Until the meeting is over the pair is likely to show choppy dynamics.
Support and resistance
Bollinger Bands on the daily chart is moving horizontally while the price range remains unchanged for the few weeks now. MACD is falling and giving a weak sell signal. Stochastic is also falling and approaching the oversold zone.
The indicators recommend waiting for clearer trading signals.
Support levels: 1060.00 (local low), 1052.58, 1046.17 (3 December low).
Resistance levels: 1064.64 (local high), 1070.00, 1074.45, 1080.84 (9 December high), 1088.66 (4 December high), 1093.53, 1101.05.
Long position can be opened after the breakout of the level of 1069.00 (with the appropriate indicators signals) with targets at 1073.80, 1077.50, 1082.00 and stop-loss at 1065.00. Validity – 2-3 days.
Short positions can be opened after the breakdown of the level of 1060.00 with targets at 1054.69, 1050.80 and stop-loss at 1064.00. Validity – 2-3 days.