XAU/USD (a 4-hour chart)
The gold prices retreated from the 2 week high after a recent rally caused by negative US statistics.
The XAU/USD was in buy mode on Thursday. Buyers were trying to erase the recent losses and led the price from the local low to the nearest resistance level – 1350 during the European session. The XAU/USD got under pressure in the North American session and decreased towards 1340. The instrument remained above the 50, 100 and 200 EMAs in the 4 hours chart. The 50-EMA is crossing the 100 and 200 EMAs upwards in the mentioned timeframe. All moving averages are turning upwards. The resistance is at 1350, the support comes in at 1330 per ounce.
MACD decreased which indicates the buyers’ positions weakening. The indicator still gives a buy signal. RSI is approaching the overbought area.
The pair is overbought and we anticipate a short term correction. The price may decrease towards 1330.