XAU/USD: price of gold continued growing amid slight pessimism expressed by the Fed

January 28, 2016

Current trend

Yesterday the price of gold continued growing amid slight pessimism expressed by the Fed. As was expected, the regulator left the interest rate unchanged at its current 0.5% but the probability of the rate hike at March meeting has fallen. At the same time, the regulator highlighted strength of the labour market that continues showing good numbers despite some general economic slowdown in the end of the last year.

Support and resistance

Bollinger Bands on the daily chart is moving up while the price range is widening. However, the price remains above its upper border for the third day. MACD is growing and giving a buy signal. Stochastic is in the overbought zone and trying to turn down.

The indicators recommend waiting for clearer trading signals.

Support levels: 1115.70 (local low), 1110.00, 1105.50, 1101.05, 1095.53, 1092.28 (21 January low), 1088.66, 1082.20.

Resistance levels: 1122.72 (local high), 1127.85 (local high), 1132.52, 1136.37, 1141.60 (2 November 2015 high), 1148.43.

Trading tips

Long positions can be opened after the breakout of the level of 1125.00 (with the appropriate indicators signals) with the target at 1136.30 and stop-loss at 1121.00. Validity – 2-3 days.

Short positions can be opened after the breakdown of the level of 1114.20 with targets at 1108.00, 1100.00 and stop-loss at 1120.00. Validity – 2-3 days.

Publication source
LiteForex information  LiteForex reviews

October 21, 2016
US Presidential Election: Final Debate Aftermath
With the dust having settled after Wednesday final US presidential debate of the 2016 campaign between Donald Trump and Hillary Clinton, the results have become rather apparent...
October 20, 2016
Doting on Draghi
The ECB meeting arrives today when EURUSD is testing key levels. The mid-year lows at 1.0952 is perilously close as I write, whilst the post-Brexit referendum low of 1.0913 being in the frame after that. It’s hard to see the ECB adding to its quantitative easing policy...
October 19, 2016
A bullish presence on the market
The Dollar upturn seen in the recent weeks that was influenced by the firm belief in a rate hike of December fizzles out, after Yellen’s speech and the downbeat US inflation and manufacturing data...

FIBO Group Rating
Fort Financial Services Rating
Tickmill Rating
OANDA Rating
Orbex Rating
OctaFX Rating

Anyoption Rating
Beeoptions Rating
OptionRally Rating
24option Rating
EZTrader Rating
365BinaryOption Rating