Published On: Wed, Apr 26th, 2017

XAU/USD: general review


Current trend

Along with other commodity assets, gold has been moving downward since the beginning of the previous week. Simultaneous fall of US dollar may be explained by the fact that positive geopolitical and economic factors for the American economy remain relevant. These include expectations of Trump’s tax reform, increase of interests rates by the Federal reserve, and reduction of FOMC balance. Strengthening European currencies also became more attractive for the investors. Technical picture confirms the influence of fundamental factors. After active growth of gold for 4 months the price met strong resistance where the lines of two trends (brown D1 and black H4) met the critical resistance level of 1.3000.

Today the market is waiting for a secondary release on oil reserves from the US Department of Energy at 16:30 (GMT+2). The most important publications this week will be the data on the US GDP on Friday. Until then the correction of gold is likely to continue.

Support and resistance

Support levels: 1250.00, 1230.00, 1210.00.

Resistance levels: 1265.00, 1280.00, 1300.00.

Trading tips

Short positions may be opened at the market price with targets at 1250.00, 1230.00 and stop-loss at 1272.00.

Long positions may be opened from the level of 1265.00 with targets at 1280.00, 1300.00 and stop-loss at 1250.00.

The period of implementation shall be 1-2 days.

Forex Analysis

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