Published On: Tue, Feb 28th, 2017

XAU/USD: market review

InstaForex

Current trend

Gold is still in an upward trend. Last week, the price of the precious metal consolidated above 1250.00 and is now trading at 1250.00-1261.00. 

During morning trading session the XAU/USD pair is consolidating near the level of 1250.00. The price of the gold decreased a bit before the new US President’s speech to Congress. Investors expect Mr. Trump to reveal the detail of his “phenomenal tax plan” and future infrastructure investments. 

USA Q4 price index is due today. The American economy increased by 2.1% year over year. If the index is above the expected results, the quotes may go down to the lower levels.

Support and resistance

On the H4 chart, XAU/USD is moving upwards, consolidating successfully above the 1250.00 level. MACD is below the signal line, volumes are growing. Stochastic is directed upwards.

Support levels: 1250.00, 1241.00, 1230.00.

Resistance levels: 1261.50, 1278.00, 1300.00.

Trading tips

Long positions can be opened above 1262.00 with target at 1278.00, stop-loss — 1260.00.

Short positions will be relevant below 1250.00, target – 1241.00, stop-loss – 1253.00.

Implementation period – 1-2 days.

Forex Analysis

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