23, September 2016

XAU/USD (a 4-hour chart)

General overview

Gold prices strengthened amid a weak dollar. The dollar softened when the Fed held off on raising interest rates.

Current situation

Metal had a positive day and closed the day in green figures. Buyers broke the resistance 1330 dollar per ounce overnight. The growth slowed down and the price traded above 1330 on Thursday. The instrument headed away from the moving averages in the 4 hours chart. The 50, 100 and 200 EMAs are turning upwards in the mentioned timeframe. The resistance is at 1340, the support comes in at 1330 dollar per ounce.

MACD is positive. The histogram grew which indicates the buyers’ strength. RSI is approaching overbought area

Trading recommendations

The XAU/USD pair might extend its growth towards 1340. In the event that the sellers manage to force the below 1330 the metal may decrease towards 1320 dollar per ounce.