26, September 2016

XAU/USD (a 4-hour chart)

General overview

Gold prices retreated from the recent high after a sharp rally the day before. The expected Fed’s decision to put rates on hold supported the metal.

Current situation

The price spent the day in a consolidation close to the recent high at 1340. Traders closed their long positions after a rally. The XAU/USD is still in green figures. The metal remained above the moving averages in the 4 hours chart. The 50, 100 and 200 EMAs are turning upwards. The resistance is at 1340, the support comes in at 1330 dollar per ounce.

MACD remained at the same level which confirms the strength of buyers. RSI is within the overbought area.

Trading recommendations

If the price makes another attempt and this time breaks above the 1340 resistance area then we could see its further growth towards 1350. If traders keep cutting long positions the price may roll back towards 1330.