25, July 2016

XAU/USD (a 4-hour chart)

XAU/USD (a 4-hour chart)

General overview

The gold became cheapen last Friday. The metal is under pressure due to the possible rate hike in the USA.

Current situation

The instrument finished the day bearish. Its rally was stopped at the level 1330 which rejected the price downwards. The price remained in a sideway channel. The resistance 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 is in the neutral area.

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

Trading recommendations

The price may continue the side trades between the levels 1330 and 1316. Alternatively, an uptrend will start as soon, as the pair rises above 1330.