XAU/USD: at local lows

November 10, 2015

Current trend

On Monday, the price of gold managed to strengthen slightly and step away from 3-month lows hit on Friday, when strong labor market statistics were released in the US.

After the USD rally, an upward correction is expected. However, the price of gold has been declining for more than a week already that suggests a growing appeal of the US currency.

Support and resistance

Bollinger Bands indicator on the daily chart is still directed downward. The price range remains wide, but the price has been out of its borders for quite a long time. MACD keeps a sell signal. Stochastic is in the oversold zone and trying to turn up.

MAC recommends keeping existing short positions. According to Bollinger Bands and Stochastic, an upward correction is likely to form.

Support levels: 1085.22 (6 November low), 1080.70 (4 August low), 1077.20, 1073.00 (February 2010 low).

Resistance levels: 1095.53 (9 November high), 1101.05, 1105.50, 1110.00, 115.70, 1121.11.

Trading tips

Long positions can be opened after the breakout and consolidation above the level of 1098.00 (with appropriate indicators signals) with the target at 1110.00 and stop-loss at 1090.00.

Short positions can be opened after the breakdown of the level of 1085.50 with targets at 1070.20, 1070.00 and stop-loss at 1092.00.

Publication source
LiteForex information  LiteForex reviews

December 5, 2016
Crisis Lite
The Italian referendum on constitutional reform saw voters reject the proposals in front of them, in a fairly decisive manner. As such, Italian PM Renzi will tender his resignation today and this became part of the issue...
December 2, 2016
Oil may remain above $50
The Oil price continued to push higher today reaching its highest level in over a year with some predicting that the OPEC deal reached yesterday was a game changer and further gains are expected...
November 29, 2016
Euro may hit parity with US dollar
The Euro was under further pressure today against the US dollar on the back of political instability in Italy and, bringing it closer to parity with its American counterpart...

FIBO Group Rating
XTB Rating
 FXTM Rating
XM Rating
Grand Capital Rating
FxPro Rating

EZTrader Rating
Beeoptions Rating
Grand Option Rating
24option Rating
Binary Brokerz Rating
OptionFair Rating