08, August 2016

XAU/USD (a 4-hour chart)

XAU/USD (a 4-hour chart)

General overview

Gold strengthened on Thursday to 4-week high when the BoE cut the rate. However, the yellow metal weakened the next day following the U.S labour market report.

Current situation

The positive trend switched to the negative one. The gold futures decreased and are decisively trading below the 1350 mark now. The resistance is seen at 1350, the support stands at 1330.

MACD is in the negative area. The histogram decreased which is a sell signal. RSI approached the oversold area.

The gold futures broke the 50-EMA and touched the 100-EMA in the 4 hours chart. The price is currently struggling with a bullish 100 EMA. The moving averages direction is upwards.

Trading recommendations

The instrument is approaching the support 1330 which limits its decrease. The pair will resume its downtrend as soon, as the price drops below the current support level.