Published On: Mon, Mar 6th, 2017

XAU/USD: general analysis


Current trend

On Friday the marked showed quite unusual reaction to the FRS Head Janet Yellen’s speech. After her commentaries about the possibility of the interest rate increase on the nearest meeting, if all the macroeconomical indices are satisfying, the USD began to lower against all the main currencies and metals, so the gold price grew by 0.019% on Friday.

On Monday the gold price is being corrected after the test of the resistance level 1236.75. Today there are no key macroeconomical issues to influence the gold dynamics significantly, so the downward correction will continue. On the 4-hour chart the technical picture is mixed.

The MACD histogram is in the negative zone, its volumes are slightly decreasing, reflecting the potential of the upward movement. It will be confirmed if the price consolidated above the middle line of the Bollinger Bands indicator (1237.86). In this case the price will grow to the level of the upper border of the Bollinger Bands indicator (1251.71).

The Bollinger Bands indicator is pointed downwards, reflecting the development of the correction. The consolidation of the price below the level of 1228.97 will give a signal to further lowering to the level of 1222.78.

Support and resistance

Support levels: 1228.97, 1222.78, 1214.52.

Resistance levels: 1237.86, 1243.67, 1251.71.

Trading scenario

Open the short positions below the level of 1228.97 with the target at 1222.78 and stop loss at 1230.95.

Open long positions above the level of 1237.86 with the target at 1243.67 and stop loss at 1235.86.

Forex Analysis

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