Today, the XAU/USD pair resumed its decline.
The market of precious metals is under pressure from a decline in commodity prices and expectations of a hike in US interest rates. Strengthening in the US Dollar makes precious metals a less appealing investment as costs of borrowings to buy and store them are growing. On the other hand, the price of gold gains support from geopolitical tensions and global economic instability.
Support and resistance
Though the XAU/USD pair is oversold, it remains under pressure and tends to continue declining.
OsMA and Stochastic on the 4-hour and daily charts are turning to short positions.
The price is trading in a descending channel on the daily chart with the lower border near the level of 1040.00.
After the breakdown of the support level of 1065.00 (lower border of an upward correctional channel on the 4-hour chart), the price continues declining to 1050.00 (December and year lows).
If the price rises back above 1085.00 (August and November lows, EMA200 and EMA144 on the 4-hour chart), a growth might reach the levels of 1095.00 (EMA50 on the daily chart) and 1118.00 (23.6% Fibonacci).
Support levels: 1060.00, 1050.00, 1045.00, 1040.00.
Resistance levels: 1085.00, 1095.00, 1105.00, 1110.00, 1118.00.
Short positions can be opened from the level of 1060.00 with targets at 1050.00, 1040.00, 1010.00 and stop-loss at 1075.00.
Long positions can be opened from the level of 1090.00 with targets at 1105.00, 1110.00, 1118.00 and stop-loss at 1080.00.