2016-09-28 13:20:37

Review and dynamics
More successful TV debates of Hillary Clinton compared with Donald Trump caused the decline in the price of gold. Yesterday's positive US macro-economic data also contributed to the rise in the USD in the e market, and in the pair XAU/USD.

The pair XAU/USD is declining in the descending channel on the daily chart with the lower limit at the level of 1290.00 (ЕМА144 on the daily chart). The upper limit of the channel is at the level of 1340.00. Since early September, the pair XAU/USD is in the range of 1350.00 and 1300.00 near important support level of 1324.00 (Fibonacci 38.2% after the decline since October 2012 and ЕМА50 on the daily chart). On the weekly chart the pair XAU/USD has broken down the lower limit of the ascending channel near the level of 1324.00. The upper limit of the channel is above the level of 1495.0 (Fibonacci 61.8%).

Our opinion
On the weekly, daily and 4-hour charts the indicators OsMA and Stochastic give sell signals. The price of gold is supported by the continuing uncertainty in global financial markets, expectations of the softer monetary policy in major World's Central Banks and mixed US macro-economic statistics.

In case of breakdown of the support level of 1300.00, the decline in the pair XAU/USD will continue to 1290.00 (ЕМА144 on the daily chart) and 1270.00 (ЕМА200 on the weekly chart).

Consolidation of the price below the level of 1218.00 (Fibonacci 23.6%) may trigger further decrease in pair XAU/USD and resumption of the downtrend, which began in October 2012.

In case of consolidation of the price above the local resistance level of 1350.00 may cause further growth, and a breakout of the range above 1370.00 and 1385.00 will trigger further rise in gold price to 1400.00 per ounce.

Support levels: 1324.00, 1300.00, 1290.00, 1270.00, 1252.00 and 1218.00.
Resistance levels: 1328.00, 1350.00, 1370.00, 1385.00, 1400.00, 1410.00 and 1435.00.

Trading tips
Buy Stop: 1335.00. Stop-Loss: 1322.00. Targets: 1350.00, 1365.00, 1385.00, 1400.00, 1410.00 and 1435.00.
Sell on the market. Stop-Loss: 1332.00. Targets: 1300.00, 1290.00, 1270.00, 1252.00 and 1218.00.

Break down of the lower limit of the channel
Break down of the lower limit of the channel

In the descending channel
In the descending channel