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

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...

Z.com Trade Rating
Larson&Holz IT Ltd Rating
HYCM Rating
FIBO Group Rating
Grand Capital Rating
FXCM Rating

Empire Option Rating
365BinaryOption Rating
OptionRally Rating
Grand Option Rating
Porter Finance Rating
TopOption Rating