09, November 2016

XAU/USD (a 4-hour chart)

General overview

Gold prices got under pressure on Tuesday on expectations of US election results.

Current situation

The market sentiment remained negative on Tuesday. Sellers met a solid barrier around 1280 and were unable to drive the price lower. After testing 1280 the price bounced off the level, hovering above it during the day. Gold prices stayed around the 50 and 200 EMAs in the 4 hours chart. Both lines present a strong resistance, holding its further gains. The moving averages (50, 100 and 200) are neutral in the same chart. The resistance is at 1290, the support comes in at 1280 dollars per ounce.

MACD decreased which confirms the strength of sellers. The RSI indicator was holding near oversold levels during the day.

Trading recommendations

If a downward pressure persists the XAU/USD pair may break the current support downwards. A bearish continuation through 1280 should lead to a continued slide, with 1270 dollars per ounce as the first probable target.