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.
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.