29, September 2016

XAU/USD (a 4-hour chart)

General overview

 Gold futures got under pressure after the first U.S. presidential debates as demand for the safe-assets diminished.

Current situation

The XAU/USD pair had a negative day on Wednesday. The price remained under pressure and extended its decline. Sellers were able to push the price lower from 1326 to 1322. The downward momentum stalled above the support 1320. In the 4 hours chart the 50, 100 and 200 EMAs are turning downwards. The resistance is at 1330, the support comes in at 1320 dollar per ounce.

MACD decreased which confirms the strength of sellers. RSI approached the oversold area

Trading recommendations

 If the level 1320 holds gold prices may develop an upward correction. In this potential scenario we will see the price move towards 1330-1335. If this support will break, the quotes may fall that should send this market looking for the 1310 level.