XAU/USD (a 4-hour chart)
The gold is under pressure due to:
1. The return to risk assets
2. The USA economy recovery
3. The expectations that the USA will hike the rate this year
The pair remained in an ascending channel, near its lower limit. The gold futures moved lower following the decision of the BoE to keep the rates unchanged. The new local low is at 1320. The resistance is at 1360, the support comes in at 1330.
MACD is in the negative area. The histogram grew which indicates the sellers’ weakness. Indicator RSI rebounded from the oversold area. Its signal line moved upwards which confirms the strength of buyers.
The price broke the 50-EMA, but was stopped at the 100-EMA which rejected it upwards. The 50, 100 and 200 EMAs are turning downwards.
We are looking for the support 1316 break and then continuation of a fall with a further target at 1300.