31, August 2016

XAU/USD (a 4-hour chart)

General overview

Gold softened due to the latest Fed officials’ remarks about the next U.S. rate hike.

Current situation

The tone is still negative in the market, the pair closed bearish yesterday. Sellers met a solid support at the 1316 mark which were not able to break at once. The price rolled back to 1325.40 where the XAU/USD turned around and returned back to the support level. The resistance is at 1330, the support comes in at 1316.

The MACD remained at the same level which confirms the strength of sellers. RSI consolidated near the oversold area.

The 50, 100 and 200 EMAs present a strong bearish slope. The moving averages are trending downwards which is a sell signal.

Trading recommendations

The XAU/USD is now under the risk of falling under the level of 1316. A break below this mark risks a decline back towards the support at 1310.