29, July 2016

XAU/USD (a 4-hour chart)

XAU/USD (a 4-hour chart)

General overview

The gold strengthened when the markets did not get any clue when the Fed will hike the rate.

Current situation

The gold spent the day in a flat close to the daily highs at 1345. The pair resumed its fall at the American session where the price decreased to the 1330 region. The resistance is seen at 1360, the support stands at 1330.

MACD is in the positive area. The histogram grew which indicates the buyers’ growing strength. Indicator RSI bounced from the overbought area.

Technically, the instrument is above the 50, 100 and 200 EMAs in the 4 hours chart. The 50, 100 and 200 Day EMAs are turning upwards.

Trading recommendations

To trigger additional upward momentum the XAU/USD needs to consolidate over the local high at 1345. In this scenario the buyers shall lead the price towards 1360.