As the Fed meeting is approaching, uncertainty in the markets is growing. The mixed dynamics of the XAU/USD pair suggests major investors’ hesitation.
The Fed is expected to keep its interest rate unchanged; but, after interest rate decision is announced, attention should be paid to comments made during the Press Conference.
Today, Consumer price Index for August and NAHB Housing Market Index for September are released in the US.
Support and resistance
OsMA ans Stochastic on the daily chart are in the negative zone. However, on the 4-hour chart, they are near the zero line, indicating that flat is likely to continue. The price is moving within a downward channel and has found a support near the level of 1102.00.
While the price remains below the resistance level of 1121.50 (ЕМА144, 200 on the 4-hour chart), short positions are preferable, and a decline to 1096.00 1088.00, 1082.00, 1078.00 (year lows) is possible.
If the Fed does not raise interest rates this week, the price of gold may grow. After the consolidation above the level of 1121.50, the price may move up to the resistance levels of 1140.00, 1149.50, 1158.00 (ЕМА144 on the daily chart). The breakout of the level of 1172.00 (EMA200 on the daily chart) would allow the price to strengthen to 1185.25 (23.6% Fibonacci).
Support levels: 1102.50, 1096.00, 1088.00, 1082.00, 1078.00.
Resistance levels: 1112.00, 1121.50, 1131.00, 1140.00, 1149.50.
Pending sell orders may be placed from the level of 1102.00 with targets at 1100.00, 1098.00, 1085.00 and stop-loss at 1106.00.
Pending buy orders may be placed from the level of 1113.00 with targets at 1121.00, 1130.00 and stop-loss at 1108.00.