21, July 2016

XAU/USD (a 4-hour chart)

XAU/USD (a 4-hour chart)

General overview

The gold futures decreased as the strong dollar undermined the attractiveness of the yellow metal.

Current situation

The gold futures were able to break the level 1330 and decreased towards the next support at 1316. The new local low is at the mark 1312. The pair lost about 1,10% during the course of the trades. The resistance is seen at 1330, the support stands at 1316.

MACD is in the negative area. The histogram decreased which indicates the sellers’ positions strength. Indicator RSI is close to the oversold area which is a sell signal.

The price broke downwards the 50 and 100 EMAs in the 4 hours chart. Now the price is in-between the 100-EMA and the 200-EMA. The 50-EMA is moving downwards, the 100 and 200 EMAs are horizontal.

Trading recommendations

The pair left behind another support on its way down. The nearest sellers’ target remains at the level 1309. The price may rebound from the level 1308 (the 200 EMA) and may return to the growth.