Today the XAU/USD pair slightly grew amid weakening in the USD after the publication of poor data from the US labour market that came out on Monday. The number of New Homes Sales in September fell from 529 to 468 thousands, while experts forecasted a growth to 550 thousands.
At the same time, gold remains under pressure prior to the Fed meeting at which the regulator might increase its interest rates in the US for the first time in 10 years, or state a date of the increase. Due to the scheduled meeting, investors’ activity remains low.
Support and resistance
On the chart, the price formed a pattern “Pin bar” that indicates a continuation of the downward movement in the pair.
Support levels: 1158.84 (yesterday low, middle MA of Bollinger Bands), 1148.00 (50% Fibonacci correction), 1137.60 (61.8% correction).
Resistance levels: 1169.63 (yesterday high), 1180.00 (psychologically important level), 1191.39 (15 October high).
Short positions can be opened below the level of 1158.00 with targets at 1150.00, 1140.00 and stop-loss at 1160.00.
Long positions can be opened from the level of 1170.00 with targets at 1179.00, 1190.00 and stop-loss at 1168.00.