22, July 2016

XAU/USD (a 4-hour chart)

XAU/USD (a 4-hour chart)

General overview

The gold became cheaper on the back of the dollar strengthening. The real estate market supported the dollar.

Current situation

The instrument finished the day bullish. The pair was able to recover and gained about 0.82% by the end of the trades. The gold stopped at the current resistance which is seen at 1330, the support stands at 1316.

MACD is in the negative area. The histogram grew which indicates the sellers’ positions weakening. Indicator RSI bounced from the oversold area.

The price broke upwards the 50 and 100 EMAs in the 4 hours chart. Now the price is above the 50-EMA which is heading to penetrate the 100-EMA downwards.

Trading recommendations

The XAU/USD rebounded from the level 1308 (the 200 EMA) and grew to the current resistance at 1330. A cut through here will turn our attention to the 1360 level.