After Thanksgiving Day in the US yesterday when American markets were closed and remained low, since today’s opening the XAU/USD pair is falling.
Most likely, amid expectations of tightening in the US downward dynamics in the pair will remain until the Fed’s meeting on 16 December.
Currently, market expectations that are represented by the price of Fed Funds stand at 78% probability of an interest rate increase in December.
Support and resistance
The pair is falling along a channel on the with the lower border below the level of 1050.00, and is heading towards 965.00 (EMA200 on the monthly chart).
At the same time, an upward correction is possible to the levels of 1085.00, 1095.00 (EMA144 on the 4-hour chart), while a breakout of the level of 1105.00 (the middle line of the upward channel) could send the price towards 1138.00 (38.2% Fibonacci correction, EMA144 on the ).
On all charts from the 4-hour to monthly, OsMA and suggest a fall continuation.
Support levels: 1065.00, 1060.00.
Resistance levels: 1085.00, 1095.00, 1105.00, 1118.00.
Pending sell orders can be placed at the level of 1064.00 with targets at 1060.00, 1050.00, 1010.00 and stop-loss at 1072.00.
Pending buy orders can be placed at the level of 1078.00 with targets at 1085.00, 1095.00, 1105.00 and stop-loss at 1072.00.