Gold Forecast

XAU/USD: gold is trading in both directions

Current trend. Gold prices showed a decline last Friday, departing from local highs updated during the last week. The reason for the emergence of "bearish" dynamics was the growth of the US currency, as well as significantly increased investor interest in risk amid a correction in European stock markets.

American investors are focused on preparations for the meeting of US President Donald Trump and Chinese President Xi Jinping at the G20 summit in Argentina. During the month, investors have been receiving a lot of contradictory information about this. The day before, Trump encouraged investors again, saying that China is ready to make a deal. Vice Minister of Commerce of PRC Wang Shouwen, in turn, noted that the American and Chinese trade representatives are in close contact. At the moment, the market is set to a positive outcome of the negotiations.

Support and resistance

Bollinger Bands in D1 chart demonstrate a gradual decrease. The price range is narrowing, reflecting ambiguous nature of trading in recent weeks. MACD is growing, keeping a weak buy signal (located above the signal line). Stochastic, in contrast, maintains a rather active “bearish” trend, signaling in favor of the development of a downward correction of the instrument.

The indicators remain contradictory, so it is necessary to wait for clarification of trade signals.

Resistance levels: 1226.11, 1229.84, 1233.08, 1237.16.

Support levels: 1220.12, 1216.62, 1211.80, 1208.14.

8f5a6fe1ca9f7dc92473e60ae7d8af0d.png
 

Trading tips

To open long positions, one can rely on the breakout of 1226.11. Take profit — 1233.08 or 1237.16. Stop loss — 1222.00.

A breakdown of 1220.12 may become a signal for returning to sales with target at 1211.80 or 1208.14. Stop loss — 1224.00.

Implementation period: 2-3 days.

 

Scenario

Timeframe Intraday
Recommendation BUY
Entry Point 1226.90
Take Profit 1233.08, 1237.16
Stop Loss 1222.00
Key Levels 1208.14, 1211.80, 1216.62, 1220.12, 1226.11, 1229.84, 1233.08, 1237.16

 

Alternative scenario

 

Recommendation SELL STOP
Entry Point 1220.05
Take Profit 1211.80, 1208.14
Stop Loss 1224.00
Key Levels 1208.14, 1211.80, 1216.62, 1220.12, 1226.11, 1229.84, 1233.08, 1237.16

Add comment

Security code
Refresh

© 2014-2018 ForexCrypto.top, Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange, or any kind of trading you should carefully consider your investment objectives, level of experience, and risk appetite. No information or opinion contained on this site should be taken as a solicitation or offer to buy or sell any currency, equity or other financial instruments or services. Past performance is no indication or guarantee of future performance. ForexCrypto.top is an affiliate partner with various brokers and may be compensated for referred Traders. All reviews remain unbiased and objective and immediate action will be taken against any broker which is found to be in breach of regulation. These partnerships have proven to be great aids in the furthering communication between brokers and our visitors. Only the NFA regulated brokers featured on this site are available to U.S. customers. Forex

Search