Published On: Fri, Apr 28th, 2017

XAU/USD: general review

InstaForex

Current trend 

Gold continues to gradually strengthen: the nearest support level is located at 1261.63, and resistance — at 3/8 Murrey or 1273.46. If the price breaks through the lower level of 1261.63, the return to 1250.00 will be likely. However, the retest of previous maximums with target at 1300.00 will also be possible.

The growth of the quotes is mainly determined by negative data from the USa, where the number of initial jobless claims exceeded the forecasts and reached 257K. The unemployment rate is an important indicator of the state of American economy, and FOMC takes in into consideration when making decisions on the fiscal policy. The demand for durable goods also decreased to -0.2%.

 The main release today will be initial data on the US GDP for Q1 2017. Its expected value is 1.1%, but if the indicator appear to have higher values, USD will continue to strengthen against gold.

Support and resistance

Stochastic has reached 58 points and gives no signals for the opening of trading positions. Long positions may be opened at current prices.

Support levels: 1261.63.

Resistance levels: 1273.46.

Trading tips

Long positions may be opened at current prices with targets at 1273.46 and stop-loss at 1262.63. 

Forex Analysis

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