Current trend

Last week, the pair declined moderately due to the strong USD. Last Thursday, the instrument strengthened after the release of positive statistics on personal spending and the labor market in the US. Today, the volume of trading on the market will be limited due to the celebration of Labor Day in the United States.

The pair will continue to trade within the "bearish" trend, as market participants are confident that the Fed will raise rates at the next meeting. The most important event of the current week is the publication of the report on the US labor market on Friday. According to the forecast, in August 187 thousand jobs were created in the USA, which is by 30 thousand more than in the previous period, and the average hourly wage increased by 0.1%.

There is a lack of key macroeconomic publications today. Market participants expect the reaction of the US President to the Saturday talks within the Comprehensive Regional Economic Partnership.

Support and resistance

On the 4-hour chart, the instrument is traded within a narrow price range of 1197.50–1202.50. Bollinger bands are directed horizontally, and the price range remains limited, indicating the continuation of the corrective dynamics. MACD histogram is in the neutral zone, the signal for entering the market is not formed. Stochastic does not give a clear signal for opening positions.

Resistance levels: 1207.78, 1214.32, 1227.92, 1243.54.

Support levels: 1160.54, 1175.30, 1186.62, 1197.70.

Trading tips

Short positions can be opened below the level of 1192.30 with the targets at 1175.38, 1170.75 and stop loss 1206.50. Implementation period: 2–3 days.

Long positions can be opened above the level of 1209.00 with the target at 1220.00 and stop loss 1203.00. Implementation period: 1–3 days.

Spot Gold

BuySellSpread
1199.941199.1282

Scenario

TimeframeDay's Range
RecommendationsSELL STOP
Entry Point1192.25
Take Profit1175.38, 1170.75
Stop Loss1206.50
Support levels1160.54, 1175.30, 1186.62, 1197.70, 1207.78, 1214.32, 1227.92, 1243.54

Alternative scenario

RecommendationsBUY STOP
Entry Point1209.10
Take Profit1220.00
Stop Loss1203.00
Support levels1160.54, 1175.30, 1186.62, 1197.70, 1207.78, 1214.32, 1227.92, 1243.54
XAU/USD: general analysis

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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