05, August 2016

XAU/USD (a 4-hour chart)

XAU/USD (a 4-hour chart)

General overview

Gold grew and gained back its early losses following the Bank of England decision to cut the rate.

Current situation

The pair had a positive day on Thursday. Traders pushed the gold higher to the mark 1364 where the price had found a strong resistance. The resistance is seen at 1370, the support stands at 1350.

MACD is in the positive area. The histogram grew which is a buy signal. RSI is close to the overbought area.

The 1 hour chart shows that the price broke the 50 and the 100 EMAs before returning above them. The 50, 100 and 200 Day EMAs are trending upwards in the mentioned time frame.

Trading recommendations

The main point of focus today is Non Farm Payrolls in the USA. In the scenario when the Fed releases the positive unemployment report the gold futures will decrease towards 1350. Alternatively, the yellow metal will grow above 1370.