XAU/USD: gold falling

September 30, 2015

Current trend

This week, prices of gold fell.

While markets are waiting for the data on Non-farm Payrolls for September from the US, which is due on Friday at 3:30 pm (GMT +3), the USD is likely to be preferred to other currencies and gold.

In her last commentary, the Chair of the Fed Janet Yellen confirmed that interest rates could still be increased before the end of the year. However, there is a disagreement regarding the timing of the increase between other members of the regulator.

Support and resistance

The price bounced off the strong resistance level at 1155.20 (upper border of a descending channel, EMA144 on the daily chart and 50% Fibonacci).

A breakdown of the level of 1118.00 (23.6% Fibonacci) would stop an upward correction and send the pair towards the levels of 1085.00 (year lows) and 1172.00 (ЕМА144 on the monthly chart). At the same time, a breakout of the level of 1180.00 (ЕМА50 on the weekly chart) could reverse the medium-term trend.

OsMA and Stochastic on the daily and 4-hour charts signal sales.

Support levels: 1105.00, 1118.00.

Resistance levels: 1127.00, 1138.00, 1155.20, 1170.00.

Tradingtips

Open short positions after the price consolidation below the level of 1122.00 with the target at 1113.10 and stop-loss at 1125.00.

Long positions can be opened after the breakout of the level of 1133.10 with targets at 1140.70, 1145.60 and stop-loss at 1130.90.

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