2016-11-02 11:33:32

Review and dynamics
The USD is going down in the market due to uncertainty on the outcome of the presidential voting in the USA.

The pair XAU/USD has been rising since the beginning of this month and this trading week. After the failure to break down support level of 1268.00 (ЕМА200 on daily and weekly charts) the pair XAU/USD is going up in the ascending channel on the weekly chart with the upper limit near the level of 1410.00 (Fibonacci 50.0% after the downtrend since October 2012).

The upper line of the descending channel on the daily chart was broken at the level of 283.00 (ЕМА144 on the daily chart, ЕМА200 on 4-hour chart).

Our opinion
On the weekly, daily and 4-hour charts the OsMA and Stochastic indicators give signals for long positions

The pair EUR/USD can go up above the level of 1283.00 with the next target at the resistance level of 1324.00 (Fibonacci 38.2%). Breakout of this level may trigger further rise in the ascending channel on the weekly chart with targets 1385.00 (annual highs) and 1410.00.

If the Fed confirms intention to tighten monetary policy in December, the price of gold and XAU/USD will go down.

After the decline return below the level of 1268.00, the pair can continue to decline in the descending channel on the daily chart with the next target of 1218.00.

Breakdown of the support level of 1218.00 (Fibonacci 23.6%) may trigger further decline in the pair XAU/USD and resumption of the downtrend, which began in October 2012.

Уровни поддержки: 1283.00, 1268.00, 1250.00, 1218.00
Уровни сопротивления: 1324.00, 1350.00, 1370.00, 1385.00, 1400.00

Trading tips
Buy Stop: 1298.00. Stop-Loss: 1288.00. Targets: 1300.00, 1324.00, 1350.00 and 1370.00.
Sell Stop: 1287.00. Stop-Loss: 1298.00. Targets: 1283.00, 1268.00, 1250.00, 1218.00 and 1200.00.

Rebound from the level of 1283.00
Rebound from the level of 1283.00

Breakout of the upper line of the channel
Breakout of the upper line of the channel