Current trend

Within one week the XAU/USD pair gained back all the losses it incurred after a sharp fall from near the level of 1132.00 due to investment fund gold sell-offs.

The unexpected Yuan devaluation forced investors to seek safe placements of their funds. Thus at present gold is going to serve as the save-haven asset to hedge risks.

Today a bunch of news is out in the US between 3:30 pm and 5 pm (GMT +3) that are going to affect the movement in the pair.

Support and resistance

Until the middle of September a flat between 1110.00-1132.00, or a consolidation near the level of 1120.00 (EMA200 on the 4-hour chart) is possible in the pair.

OsMA and Stochastic on the daily chart signal sales, while on the 4-hour chart they are turning to form a sell signal.

A short-term growth in the pair can reach 1126.50. The farthest levels for the growth is the area of 1132.00-1134.00 (ЕМА50 on the daily chart).

Support levels: 1112.50, 1106.00, 1096.00, 1088.00, 1082.00.

Resistance levels: 1120.00, 1132.00.

Trading tips

Open long positions above the level of 1112.50 (with the appropriate indicators signals) with targets at 1120.00, 1132.00, the breakout of which would open the way to 1140.00, 1149.00. Stop-loss should be set at 1110.00.

Place pending sell orders form the levels of 1130.00, 1132.00 with targets at 1120.00, 1113.00 and stop-loss at 1134.50; and from the level of 1112.10 with targets at 1110.00, 1106.00, 1096.00, 1088.00, 1082.00 and stop-loss at 1122.00.

 XAU/USD: flat is possible

XAU/USD: flat is possible

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