Review and dynamics
On the weekly chart the pair XAU/USD remains in the ascending channel with the upper limit near the levels of 1385.00 (highs of 2014) and 1410.00 (Fibonacci 50.0% to the decline since October 2012). The pair XAU/USD is above the level of 1324.00 (Fibonacci 38.2%) and positive momentum continues.
On 4-hour chart the indicators OsMA and Stochastic give buy signals; on the daily chart the indicators are reversing towards the long positions.
As long as the pair remains above support level of 1324.00 (Fibonacci 38.2%, ЕМА50 on the daily chart), long positions will be preferable.
In case of breakout of this level, next support levels will be at 1264.00 (ЕМА144 on the daily chart and ЕМА200 on the weekly chart), 1244.00 (ЕМА200 on the daily chart) and 1218.00 (Fibonacci 23.6%). Consolidation of the price below these levels may trigger further decline in the pair XAU/USD and resumption of the downward, which began in October 2012.
Weak American macro-economic data, low chances of the interest rate hike by the US Fed, slowdown of the global economy and prospect of further monetary policy easing by some of the Central Banks will support the rise in demand for gold.
Support levels: 1324.00, 1316.00, 1300.00, 1264.00, 1244.00 and 1218.00.
Resistance levels: 1370.00, 1385.00, 1400.00, 1410.00, 1435.00 and 1500.00.
Buy on the market. Stop-Loss: 1323.00. Targets: 1365.00, 1385.00, 1400.00, 1410.00, 1435.00 and 1500.00.
Sell Stop: 1322.00. Stop-Loss: 1335.00. Targets: 1316.00, 1300.00, 1264.00, 1240.00 and 1218.00.
In the ascending channel
Above support level of 1324.00