While market participants are waiting for the ECB meeting, which is likely to shed light on the further prospects of the EU monetary policy, the volatility in the XAU/USD pair has been very low since the opening of the trading session.
Lowering expectations of US rate hike allowed the price of gold to strengthen from August lows to the level of 1080.00. At the same time, verbal interventions of the Fed officials keep the price from an active growth.
Further dynamics of the XAU/USD pair will depend on the results of the ECB and Fed meetings.
Support and resistance
On the daily chart, the XAU/USD pair is trading within an upward channel, where the level of 1180.00 (EMA50 on the weekly chart) is still a strong resistance level, the breakout of which may lead to a growth in the medium term.
OsMA and Stochastic indicators on the 4-hour and daily charts recommend short positions.
Support levels: 1155.20, 1138.00.
Resistance levels: 1168.00, 1171.00, 1180.00, 1190.00.
Short positions can be opened after the breakdown of the level of 1163.80 with the target at 1152.50 and stop-loss at 1166.00. Validity – 1-2 days.
If the price overcomes the level of 1172.00, long positions will become valid with the target at 1180.00 and stop-loss at 1168.00. Validity – 2-3 days.