At present, market expectations regarding the interest rate increase in the US shifted towards December 2015 and March 2016. As the head of the Fed Janet Yellen stated, the US economy needs a little more time to get higher inflation growth due to a fall in oil prices and the strengthened Dollar.
The most recent growth in gold prices happened largely due to the USD decline after the Fed interest rates decision. However, if macroeconomic data from the US keeps coming out strong, gold prices are likely to continue its descending trend.
Support and resistance
The next targets of the fall could be the levels of 1129.50 (ЕМА50 on the daily chart), 1123.00 (ЕМА200 on the 4-hour chart), 1112.00, 1102.00.
However, if the price consolidates above the level of 1140.00, the pair continues growing towards 1149.50, 1158.00 (ЕМА144 on the daily chart). At the same time, the breakout of the level of 1172.00 (ЕМА200 on the daily chart) could reverse the medium-term downward trend and allow the pair to grow to 1185.25 (23.6% Fibonacci).
On the daily chart, OsMA and Stochastic signal purchases, while on the 4-hour chart they start turning to sales.
Support levels: 1129.00, 1123.00, 1112.00, 1102.00, 1078.00.
Resistance levels: 1140.00, 1149.50, 1158.00.
Open short positions from the current levels and from 1140.00, 1142.00 with targets at 1129.00, 1123.00, 1112.00, 1102.00 and stop-loss at 1150.00.
Long positions can be opened from the level of 1152.00 with targets at 1158.00, 1171.00 and stop-loss at 1148.00.