Current trend
Gold prices declined on Tuesday, interrupting a series of extremely uncertain growth from two consecutive sessions. Reduction of quotations is associated with a moderate growth of USD ahead of the Fed meeting, which is expected to raise the key rate for the second time in 2018.
Nevertheless, the greatest interest of investors is caused not by the current growth of the interest rate, but by the Fed's plans for the future: analysts believe that the regulator can increase the rate four times this year.
The signing of a joint statement by the leaders of the US and the DPRK on the complete denuclearization of the Korean peninsula only slightly affected the dynamics of gold.
Support and resistance
Bollinger Bands in D1 chart demonstrate flat dynamics. The price range is narrowing, reflecting the mixed nature of trading in recent days. MACD indicator is growing keeping a weak buy signal (histogram is above the signal line). Stochastic, reacting to the emergence of the "bearish" trend on Tuesday sharply turned into a downward plane.
Technical indicators remain controversial, so it is better to wait for clarification of the situation.
Resistance levels: 1301.40, 1307.45, 1312.48, 1317.17.
Support levels: 1292.69, 1287.60, 1281.73.
Trading tips
To open long positions one can rely on the breakout of the level of 1301.40 if any new buy signals emerge. Take-profit – 1312.48. Stop-loss — 1296.00.
Further development of "bearish" trend in the short term with the breakdown of the level of 1292.59 may become a signal for new sales with target at 1281.73. Stop-loss should be placed no further than 1300.00.
Implementation period: 2-3 days.
Trade
Scenario
Timeframe Intraday
Recommendation BUY STOP
Entry Point 1301.50
Take Profit 1312.48
Stop Loss 1296.00
Key Levels 1281.73, 1287.60, 1292.69, 1301.40, 1307.45, 1312.48, 1317.17
Alternative scenario
Recommendation SELL STOP
Entry Point 1292.50
Take Profit 1281.73
Stop Loss 1300.00
Key Levels 1281.73, 1287.60, 1292.69, 1301.40, 1307.45, 1312.48, 1317.17
Gold prices declined on Tuesday, interrupting a series of extremely uncertain growth from two consecutive sessions. Reduction of quotations is associated with a moderate growth of USD ahead of the Fed meeting, which is expected to raise the key rate for the second time in 2018.
Nevertheless, the greatest interest of investors is caused not by the current growth of the interest rate, but by the Fed's plans for the future: analysts believe that the regulator can increase the rate four times this year.
The signing of a joint statement by the leaders of the US and the DPRK on the complete denuclearization of the Korean peninsula only slightly affected the dynamics of gold.
Support and resistance
Bollinger Bands in D1 chart demonstrate flat dynamics. The price range is narrowing, reflecting the mixed nature of trading in recent days. MACD indicator is growing keeping a weak buy signal (histogram is above the signal line). Stochastic, reacting to the emergence of the "bearish" trend on Tuesday sharply turned into a downward plane.
Technical indicators remain controversial, so it is better to wait for clarification of the situation.
Resistance levels: 1301.40, 1307.45, 1312.48, 1317.17.
Support levels: 1292.69, 1287.60, 1281.73.
Trading tips
To open long positions one can rely on the breakout of the level of 1301.40 if any new buy signals emerge. Take-profit – 1312.48. Stop-loss — 1296.00.
Further development of "bearish" trend in the short term with the breakdown of the level of 1292.59 may become a signal for new sales with target at 1281.73. Stop-loss should be placed no further than 1300.00.
Implementation period: 2-3 days.
Trade
Scenario
Timeframe Intraday
Recommendation BUY STOP
Entry Point 1301.50
Take Profit 1312.48
Stop Loss 1296.00
Key Levels 1281.73, 1287.60, 1292.69, 1301.40, 1307.45, 1312.48, 1317.17
Alternative scenario
Recommendation SELL STOP
Entry Point 1292.50
Take Profit 1281.73
Stop Loss 1300.00
Key Levels 1281.73, 1287.60, 1292.69, 1301.40, 1307.45, 1312.48, 1317.17