Review and dynamics
With the opening of today’s trading day, yesterday’s significant decline in gold continued. The price of gold has been declining since the beginning of this month. The price has broken the lower line of the ascending channels on the daily and weekly charts at the level of 1231.00 with the upper limit close to the levels of 1300.00 and 1323.00 (Fibonacci 38.2%) and continues to fall to support level of 1218.00 (Fibonacci 23.6% to the wave of decline since October 2012).
The USD maintains its positions in the currency market due to the belief that the US Fed will raise interest rates in June.
The USD can easily reach support level of 1218.00. After breaking out of this level, the price will go to 1204.00 (ЕМА144). In case of breakout of 1193.00, downtrend in the pair may resume.
On the daily, weekly and 4-hour charts the indicators OsMA and Stochastic give signals to sell. If the price goes up above the level of 1248.00 (ЕМА50 on the daily chart) the pair may go to resistance level of 1280.00. Breakout of this level will trigger the rise in price in the ascending channel on the weekly chart with the targets of 1300.00 and 1323.00 (Fibonacci 38.2%).
Support levels: 1218.00, 1200.00, 1204.00 and 1193.00.
Resistance levels: 1231.00, 1240.00, 1248.00, 1258.00, 1280.0 and 1300.00.
Buy Stop: 1235.00. Stop-Loss: 1225.00. Targets: 1240.00, 1248.00, 1258.00, 1263.00, 1280.00 and 1300.00.
Sell on the market. Stop-Loss: 1232.00. Targets: 1218.00, 1204.00, 1200.00 and 1193.00.
The indicators give signals to sell
Decline will continue up to the level of 1204.00