Current trend

While stock markets keep falling, investors are switching their funds into the safe-haven assets the Yen, the Franc and gold. On Tuesday, December futures for gold on COMEX grew by 0.6%.

Emergency actions by the Chinese government aimed at stabilising their stock market were not successful yet, and the Asian stock market indices kept falling. Shanghai Composite fell by 0.2%, Shenzhen Composite by 2%, ChiNext by 1.8% and Nikkei Stock Average by 0.4%.

This week markets are waiting for Friday’s NFPR data and the G20 meeting at the weekend. Today, pay attention to the ADP Employment Change from the US, Factory Orders, EIA Crude Oil Stocks Change for the last week of August, and the Fed’s Beige Book.

Support and resistance

On the 4-hour, daily and weekly charts, Stochastic turned to purchases. OsMA is near the zero line and signals flat.

As long as the pair remains below the levels of 1149.50 and 1166.00 it will tend to continue falling, while the breakdown of the level of 1120.00 would resume the downward trend towards year lows at 1085.00. However, the breakout of the levels of 1180.00 (ЕМА200 on the daily chart), 1185.25 (23.6% Fibonacci) would reverse the pair upwards.

Support levels: 1135.00, 1129.00, 1120.00.

Resistance levels: 1143.00, 1149.50, 1166.00.

Trading tips

Place pending sell orders at the level of 1137.00 with targets at 1135.00, 1129.00 and stop-loss at 1142.00.

Pending buy orders can be placed at the level of 1143.50 with targets at 1147.00, 1148.50 and stop-loss at 1138.00.

XAU/USD: short-term flat

XAU/USD: short-term flat


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