21, September 2016

XAU/USD (a 4-hour chart)

General overview

 Gold was neutral on Tuesday as traders prepared for the U.S. and BoJ central banks meetings.

Current situation

Gold prices enjoyed a mixed session through trade on Tuesday. The price recovered during the Asian session and turned around in the European one. The pair came across a selling pressure near the resistance 1320, turned around and headed towards 1310. The XAU/USD bounced from the 50-EMA in the 4 hours chart. The moving averages kept heading lower. The resistance is at 1320, the support comes in at 1310 dollar per ounce.

 MACD decreased which indicates the strength of sellers. RSI is within the neutral territory. The oscillator is heading south.

Trading recommendations

 If the Fed raises the rate as the most probable scenario, we consider further moving downwards towards the level at 1300. If the U.S. regulator keeps the rate unchanged the price will grow through 1320 towards 1330.