Yesterday the price of gold slightly grew and the pair ended a downward correctional impulse that was formed in the beginning of the week.
At the same time, traders cautiously enter the market prior to the key US Fed meeting that is due next week, when the regulator can increase interest rates that would substantially support the US Dollar. However, many experts suggest that the possible December rate hike was already incorporated in the prices.
Support and resistance
Bollinger Bands on the daily chart is moving horizontally while the price range is narrowing. MACD is growing and giving quite strong buy signal. Stochastic failed to approach the overbought zone and turned down.
The indicators recommend waiting for clearer trading signals.
Support levels: 1074.45, 1070.00, 1064.64 (18 November low), 1060.00, 1052.58, 1046.17 (3 December low).
Resistance levels: 1080.84 (local high), 1088.66 (4 December high), 1095.53, 1101.05, 1105.50, 1110.00 (beginning of November high), 1115.70.
Long positions can be opened after the breakout of the level of 1088.90 (with the appropriate indicators signals) with targets at 1097.80, 1103.50 and stop-loss at 1079.00. Validity – 2-3 days.
Short positions can be opened after the breakdown of the level of 1075.00 with the target at 1063.30 and stop-loss at 1080.00. Validity – 2-4 days.