Yesterday the price of gold continued growing amid slight pessimism expressed by the Fed. As was expected, the regulator left the interest rate unchanged at its current 0.5% but the probability of the rate hike at March meeting has fallen. At the same time, the regulator highlighted strength of the labour market that continues showing good numbers despite some general economic slowdown in the end of the last year.
Support and resistance
Bollinger Bands on the daily chart is moving up while the price range is widening. However, the price remains above its upper border for the third day. MACD is growing and giving a buy signal. Stochastic is in the overbought zone and trying to turn down.
The indicators recommend waiting for clearer trading signals.
Support levels: 1115.70 (local low), 1110.00, 1105.50, 1101.05, 1095.53, 1092.28 (21 January low), 1088.66, 1082.20.
Resistance levels: 1122.72 (local high), 1127.85 (local high), 1132.52, 1136.37, 1141.60 (2 November 2015 high), 1148.43.
Long positions can be opened after the breakout of the level of 1125.00 (with the appropriate indicators signals) with the target at 1136.30 and stop-loss at 1121.00. Validity – 2-3 days.
Short positions can be opened after the breakdown of the level of 1114.20 with targets at 1108.00, 1100.00 and stop-loss at 1120.00. Validity – 2-3 days.