01, July 2016

XAU/USD (a 4-hour chart)

XAU/USD (a 4-hour chart)

General overview

On Thursday the gold weakened due to the decrease of the passions over the London decision to leave the UK. The current stability in the markets undermined demand for the safe assets.

Current situation

The gold remained in a consolidation phase. The pair was moving in a range 1312 – 1325. The resistance is at 1330, the support comes in at 1300.

MACD is in the positive area, its histogram continued decreasing. If the histogram grows the price will follow it. If the MACD returns to a decrease, the drop of the pair will be continued. RSI remained close to the overbought area. If the signal line gets into the area the growth will be continued. In the scenario where the oscillator falls we will get a sell signal. The price is close to the 2 year high on the daily chart. The price is above the Moving Averages and their direction is upwards.

Trading recommendations

After the support level of 1300 breakthrough down the way to the support 1270 will be opened.