13 November, 2015
On Thursday, the price of gold fell to its 5-year lows. The Bearish trend accelerated amid macroeconomic statistics form the US than strengthened expectations of an interest rates hike on the US in December.
The number of Jobs Openings in September grew from 5.377 to 5.526 million against a forecasted fall to 5.370 million. However, the number of Initial Jobless Claims for the week remained unchanged at 276 thousands and came out worse than an anticipated fall to 270 thousands. According to forecasts of analysts, the chances of the interest rate increase in the US in December currently rose to 70%.
Support and resistance
Bollinger Bands on the daily chart is moving down while the price range is getting ready to narrow. MACD is trying to turn up forming a buy signal. Stochastic is leaving the oversold zone.
The indicators recommend considering an upward correction possibility or waiting for clearer trading signals.
Support levels: 1080.70 (local low), 1077.20, 1073.95 (local low).
Resistance levels: 1085.22 (local high), 1095.53 (9 November high), 1101.05, 1105.50, 1110.00 (5 and 6 November highs), 1115.70, 1121.11.
Long positions can be opened after the breakout of the level of 1088.00 with the target at 1096.00 and stop-loss at 1085.00. Validity – 1-3 days.
Short positions can be opened after the breakdown of the level of 1081.00 with the target at 1072.30 and stop-loss at 1084.00. Validity – 2-3 days.
On the 4-hour chart, the pair is trading near the level of 15.32 (23.6% correction). The price is supported by the 38.2% fan line, directed up, and the level of 15.05 (38.2% correction)...
Since the beginning of this week, the pair continues strengthening amid some reduction in anxiety on the market. The Dollar was supported by data on Retail Sales that came out in the US on Friday. In January, the index grew by 0.2% that was slightly better than forecasts of economists...
Since the middle of the previous week, the price of Brent crude oil continues growing amid weakness of the US Dollar. In addition, the price is supported by expectations of the reduction in output by major world producers...
On the daily chart, the pair is trading just above the lower MA of Bollinger Bands. The price remains below the EMA130, EMA65 and EMA14, all directed down. The RSI is failing to break out from the oversold zone as it tested its resistance at 32 mark two times last week...
The price remains under pressure amid strengthening US Dollar that was significantly supported after the publication of strong NFPR data in the US that substantially increased chances of an interest rate hike in December...
On the 4-hour chart, the price is trading in the area of 48.10 which is seen as a particularly strong level as 23.6% Fibonacci both for the short-term and medium-term trends have concentrated in the area of 48.10-47.80...
At the end of last week, the price of Brent crude oil strengthened moderately, being supported by the weakness of the US dollar which failed to hold its positions, gained after the recent Fed meeting...
Last week the price of gold significantly grew. The pair remains under pressure amid concerns on the markets that the Fed will refrain from an interest rate increase before the end of the year...
The XAU/USD pair continues growing amid uncertainty over the timing of an increase in US interest rates. Thus, statements concerning a forthcoming hike gave way to worries over a slowdown in global economy and comments on the need for new anti-crisis measures...