2016-09-13 12:25:43

Review and dynamics
Yesterday's statements by the Governor Lael Brainard speak, the representative of the fed, in which she expressed her opinion about the future preservation of low interest rates in the United States, stopped the fall of the financial markets, observed the wound on Friday in the first half of the day Monday.The price of gold rebounded from the support level 1324.0 (Fibonacci level of 38.2% retracement of the downtrend from October 2012) and it slightly increases with the opening of the trading day.The price of gold can't seem to determine the direction of movement against the background of contradictory statements of the leaders of the fed on the likelihood of a rate hike in the US in the coming months, on the one hand, and the weak American macroeconomic statistics, on the other hand.

Yesterday's statements by the Fed representative Lael Brainard suggesting preservation of the low interest rate in the United States, has suspended the fall in the financial markets, which has continued since last Friday until Monday morning. The price of gold has rebounded from the support level of 1324.0 (Fibonacci 38.2% to the decline since October 2012) and started to rise since the opening of today’s trading day. It is likely that the price of gold cannot determine movement direction due to contradictory statements of the leaders of the US Fed about the future of the interest rate in the coming months and weak American macro-economic statistics.

On the daily chart the pair XAU/USD is in the descending channel slightly angled with the upper limit at the level of 1360.00.

On the weekly chart the pair XAU/USD is in the ascending channel with the upper limit at the level of 1410.0 (Fibonacci 50.0%).

Our opinion
The indicators OsMA and Stochastic give mixed signals. On the daily chart the indicators recommend to open short positions; while on 4 hour and weekly charts the indicators are reversing towards the buy positions. The price is above the key support levels of 1324.00 (Fibonacci 38.2% and ЕМА50 on the daily chart) and 1264.00 (ЕМА200 on the daily and weekly charts). It is likely that the pair will continue to grow.

On 4 hour chart price is in the ascending channel. Breakdown of the resistance level of 1332.00 will signal that long positions are preferable.

Consolidation of the price above the local resistance level of 1350.00 will increase chances of the rise in the pair. Breakout of the price above the levels of 1365.00, 1385.00 will enable the further rise up to the level of $1400.00 per ounce.

As an alternative scenario the price can breakdown support level of 1324.00 and fall to the level of1305.00 (lows of August). Further targets will be at the levels of 1264.00 (ЕМА200 on the weekly and daily charts and the lower line of the ascending channel on the weekly chart) and 1252.00 (ЕМА144 on the weekly chart).

Consolidation of the price below the level of 1218.00 (Fibonacci 23.6%) will trigger further decline and return of the pair in the downtrend, which started in October 2012.

Support levels: 1324.00, 1305.00, 1264.00, 1252.00 and 1218.00.
Resistance levels: 1332.00, 1350.00, 1365.00, 1385.00, 1400.00, 1410.00, 1435.00 and 1500.00.

Trading tips

Buy Stop: 1335.00. Stop-Loss: 1328.00. Targets: 1350.00, 1365.00, 1385.00, 1400.00, 1410.00 and 1435.00.
Sell Stop: 1322.00. Stop-Loss: 1333.00. Targets: 1305.00, 1264.00, 1252.00 and 1218.00.

In the ascending channel
In the ascending channel

As support level of 1324.00
As support level of 1324.00