XAU/USD (a 4-hour chart)
Gold prices gained on yesterday's trades when the dollar moved from the 14 years high. Besides, the markets took a breath awaiting for J.Yellen's testimony.
Gold prices remained flat on Thursday. The trading range narrowed and prices traded between 1225 and 1230 dollars per ounce during the day. The yellow metal slightly grew from the lower limit of the range to its upper one. However its recovery stalled after testing the 1230 level. According to 1 hour chart the pair broke the 50-EMA and tested the 100-EMA. The 100-EMA slowed down the XAU/USD pair acting as a resistance. The 50-EMA is neutral in the mentioned timeframe while the 100 and 200 EMAs maintained their bearish slopes. The resistance is at 1230, the support comes in at 1220 dollars per ounce.
MACD grew which indicates the sellers’ positions weakening. The RSI oscillator consolidated within negative levels.
A break above 1230 will suggest further extension towards 1240. Conversely, a strong breakdown and close below 1220 could send prices lower towards 1210 dollars per ounce.