Current trend

On Tuesday, gold continued falling amid strengthening across the market USD. The US Dollar is growing after it fell as the Fed published its decision to keep interest rates unchanged. Nevertheless, investors hope the regulator is going to increase the rate before the end of the year.

In addition, the Chinese crisis continues influencing the movement in the pair. Today, the Caixin Flash Manufacturing PMI for September fell from 47.3 to 47.0 points, against forecasted growth to 47.5 points.

Support and resistance

Bollinger Bands on the daily chart is horizontal, while the price range remains wide. MACD, after it climbed above the zero line, now turning down again and forming a sell signal. Stochastic has left the overbought zone and falling.

The indicators recommend considering short positions.

Support levels: 1121.11 (local low), 1115.70, 1110.00, 1105.00, 1101.05, 1098.50 (11 September low).

Resistance levels: 1126.50 (local high), 1134.30, 1141.47 (18 September high), 1147.66 (1 September high), 1156.40, 1166.20, 1169.81 (24 August high).

Trading tips

Open short positions after the price consolidation below the level of 1121.11 with targets at 1117.40, 1108.70 and stop-loss at 1124.00. Validity – 1-2 days.

Long positions can be opened after the price consolidation above the level of 1126.40 with targets at 1132.30, 1141.30 and stop-loss at 1123.00. Validity – 1-2 days.

XAU/USD: gold resumed fall

XAU/USD: gold resumed fall




The material published on this page is produced by LiteForex and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC; furthermore it has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.



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