18, August 2016

XAU/USD (a 4-hour chart)

General overview

Gold continues to trade within a medium-term channel $1335- $1358.

Current situation

Today gold market consolidate at the level of the balance price of this range at $1344. Trading activity during the day is reduced, for some time gold will stay consolidated within this range.

Trading recommendations

We note that the chance for downward consolidation breakout increased. (support at $1,335). However the likehood of the Fed rate hike can dramatically change the balance of power in this market.