2016-10-10 16:22:32

Review and dynamics
Movement in the pair XAU/USD is mixed today. On the one hand, the USD is rising in the foreign exchange market after the release of the nonfarm payroll last Friday, on the other hand, goof successful performance of Donald Trump against Hillary Clinton during the second debate of candidates for President of the United States, has increased the demand for precious metals as a safe-haven asset.

At the end of today’s trading day the pair XAU/USD has grown, despite the rise in the USD in the currency market.

The pair XAU/USD has broken out important support level of 1270.00 (ЕМА200 on daily and weekly charts).

On the weekly chart the pair XAU/USD has broken down the lower limit of the ascending channel near the level of 1300.00. The upper limit of the channel is above the level 1410.0 (Fibonacci 50.0% after the downtrend since October 2012).

Gold price is at the 4-month lows.

Our opinion
On the weekly and daily charts the indicators OsMA and Stochastic give signals to sell; on a monthly the indicators also give signals for short positions. AS soon as the indicators on 4-hour chart show the signals to sell, it will be advisable to open short positions on the pair XAU/USD.

Important support levels of 1300.00 and 1270.00 (ЕМА200 on daily and weekly charts) have been broken down. Downtrend in the pair XAU/USD continues.

Breakdown of the support level of 1250.00 (lower limit of the descending channel on the daily chart) will trigger the decline to support level of 1218.00 (Fibonacci 23.6%). Breakdown of this level will trigger further decline in the pair XAU/USD and continuation of the downward global trend, which began in October 2012.

In the medium-term long positions can be possible after consolidation of the price above the level of 1270.00. Consolidation of the price above the local resistance level of 1324.00 (Fibonacci 38.2%) may trigger further growth in the pair. Breakout of the range above the levels of 1370.00 and 1385.00 will enable further rise in gold price to $1400.00 per ounce.

Support levels: 1250.00 and 1218.00.
Resistance levels: 1270.00, 1300.00, 1324.00, 1350.00, 1370.00, 1385.00 and 1400.00.

Trading tips
Buy Stop 1278.00. Stop-Loss 1265.00. Цели 1290.00, 1300.00, 1324.00, 1350.00, 1370.00
Sell Stop 1255.00. Stop-Loss 1265.00. Цели 1218.00, 1200.00

Breakout of the level of 1270.00
Breakout of the level of 1270.00

Wait for the changes of the indicators
Wait for the changes of the indicators