30, September 2016

XAU/USD (a 4-hour chart)

General overview

 Gold prices got under pressure on Thursday ahead of the Fed officials’ comments. The positive GDP and labour data weighed on the metal as well.

Current situation

The yellow metal continued to trade in the negative ground. The price retreated from the recent high and headed towards 1310. The XAU/USD broke the level 1320 on its way downwards. The price broke the 50, 100 and 200 EMAs in the 4 hours chart. The moving averages 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 is approaching the oversold area.

Trading recommendations

This loss of the 1320 level is now pointing to a further period of downside to come. Sellers will lead the price to 1310.