21, June 2016

XAU/USD (a 4-hour chart)

XAU/USD (a 4-hour chart)

General overview

Demand for safe assets decreased, the gold futures got under pressure. The price moved away from a 22-month high last week. The improved market sentiment also contributed to the strengthening of the dollar.

Current situation

The overall outlook remained bullish despite the resent correction. The pair spent the day near the level of 1280. All attempts to break the level down had failed. The resistance is at 1300, the support is at 1280.

MACD is in a positive area, the histogram decreased. RSI left the overbought level of 70. If the price returns to the overbought area we will get a buy signal. The price is above Moving Averages (50, 100 and 200). The Moving Averages direction is upwards.

Trading recommendations

If we see the further attempts to break the support 1280 the chances for a correction will grow. Meanwhile the pair may recover to 1315.