Current trend

Last Friday, USD strengthened significantly against the backdrop of the decision by the US to impose a 25% duties on Chinese goods.

The aggressive actions of Donald Trump's administration have become a catalyst for the comprehensive strengthening of USD. Most investors regarded the introduction of duties as creating short-term problems for countries that have become opponents of the US in the trade war. At the same time, the US may become a victim of retaliation by China and the EU. Currently, gold as a safe haven asset has a great potential for growth, as the aggravation of trade relations carries significant risks for both sides.

The statement by ECB head Mario Draghi is due at 10:00 (GMT+2). His comments are important on the eve of tomorrow's meeting of the European Commission, which will discuss the response to the actions of the US administration. In addition, today at 13:00 (GMT+2) investors will follow the speech of the President and CEO of the Federal Reserve Bank of St. Louis James Bullard.

Support and resistance

On the H4 chart the instrument is correcting in the lower part of Bollinger Bands. The indicator reverses downwards, and the price range has expanded, which indicates the further decline of the pair. MACD histogram is in the negative zone keeping the sell signal. Stochastic is about to enter the overbought area, a sell signal can be formed during the day.

Support levels: 1277.65, 1273.24, 1268.70, 1261.38.

Resistance levels: 1285.81, 1290.10, 1294.23, 1298.94, 1303.28, 1310.64, 1317.30, 1325.78, 1338.66.

Trading tips

Long positions may be opened from the current level with target at 1310.64, 1325.78 and stop-loss at 1268.50. Implementation period: 2-4 days.

Short positions may be opened below the level of 1368.70 with target at 1250.50 and stop-loss at 1283.50. Implementation period: 1-3 days.

Spot Gold

BuySellSpread
1225.661225.0660

Scenario

TimeframeDay's Range
RecommendationsBUY
Entry Point1281.42
Take Profit1310.64, 1325.78
Stop Loss1268.50
Support levels1261.38, 1268.70, 1273.24, 1277.65, 1285.81, 1290.10, 1294.23, 1298.94, 1303.28, 1310.64, 1317.30, 1325.78, 1338.66

Alternative scenario

RecommendationsSELL STOP
Entry Point1368.60
Take Profit1250.50
Stop Loss1283.50
Support levels1261.38, 1268.70, 1273.24, 1277.65, 1285.81, 1290.10, 1294.23, 1298.94, 1303.28, 1310.64, 1317.30, 1325.78, 1338.66
XAU/USD: general review

The material published on this page is produced by the Claws&Horns Company and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC; furthermore it has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.

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