2016-11-21 14:47:13

Review and dynamics
Amid significant rise in the USD in the currency market after the victory of Donald Trump, the price of gold fell sharply, going below the key support levels of 1264.00 (ЕМА200 on daily and weekly charts), 1218.00 (lower line of the descending channel on the weekly chart and Fibonacci 23.6% after the decline since October 2012).

Despite correction, which started since the opening of today's trading session, pressure on gold continues on expectations of the rate hike in the United States.

Our opinion
On the weekly and monthly charts the indicators OsMA and Stochastic give sell signals. Breakdown of support level may trigger for further decline in the pair XAU/USD and return to the downward trend, which began in October 2012.

However, on 4- hour and daily charts the indicators OsMA and Stochastic give signals for long positions, showing probability of the upward correction.

In case of the correction the targets will be the levels of 1218.00, 1234.00 (ЕМА200 on the hourly chart, ЕМА50 on 4-hour chart) and 1250.00 (lows of October).

As an alternative scenario the pair XAU/USD may rise up to the key level of 1264.00.

After consolidation above level of 1275.00, the pair may continue to rise. Breakout of the resistance level 1275.00 will trigger further rise up to the levels 1305.00, 1324.00 (Fibonacci 38.2%), 1350.00, 1370.00, 1385.00 and 1400.00.

However, short positions are preferable. After consolidation of the price below the level of 1203.00, the targets will be the levels of 1100.00 (ЕМА144) and 1000.00 (ЕМА200 on the monthly chart).

Support levels: 1203.00, 1160.00, 1100.00, 1048.00 and 1000.00.
Resistance levels: 1218.00, 1234.00, 1250.00, 1264.00, 1275.00, 1305.00, 1324.00, 1350.00, 1370.00, 1385.00 and 1400.00.

Trading tips
Buy Stop: 1220.00. Stop-Loss: 1210.00. Targets: 1234.00, 1250.00, 1264.00 and 1275.00.
Sell on the market. Stop-Loss: 1220.00. Targets: 1203.00, 1160.00, 1100.00 and 1048.00.

Breakout of 1218.00
Breakout of 1218.00

Indicators give BUY signals
Indicators give BUY signals