01, September 2016

XAU/USD (a 4-hour chart)

General overview

The XAU/USD traded close to the 2-month low level as investors awaited for the U.S. statistics to evaluate if its economy was ready for a rate hike.

Current situation

The pair remained in a downward channel, close to its lower boundary. The instrument stayed below the moving averages in the 4 hours chart. The 50, 100 and 200 EMAs accelerated their declines in the mentioned timeframe. All moving averages kept heading lower. The resistance is at 1316, the support comes in at 1300.

The MACD remained at the same level which confirms the strength of sellers. RSI consolidated near the oversold area.

Trading recommendations

The pair presents a bearish tone, all indicators recommend short positions. If the gold futures preserve downward momentum its next stop could well be at the 1300 region.