Current trend
XAU/USD is strengthening due to the poor macroeconomic statistic publication in the USA and political tense between USA and North Korea.
Yesterday the Initial Jobless Claims data were published, which were worse than expected: the index grew from 241 to 244K, as the experts supposed the fall to 240K. In addition, the July Producer Price Index unexpectedly falls by 0.1%, which resulted in the decrease of the YoY indicator. The USD is also under the pressure due to New York Fed’s president William Dudley’s statement, who expressed the fear of the low inflation. In the current situation gold is an attractive asset for the investors in the short term.
Today’s key release is Consumer Price Index publication in the USA. If the indicator is worse than expected, the pair will too likely to renew the year highs.
Support and resistance
On the daily chart the instrument is trying to consolidate above the level of 1290.00. Bollinger Bands are pointed upwards; the price range stays the same, reflecting the high possibility of the development of the upward trend. MACD histogram is in the positive zone, keeping buy signal. Stochastic is ready to enter the overbought area.
Support levels: 1265.00, 1270.40, 1274.75, 1280.75.
Resistance levels: 1289.00, 1296.20, 1307.00.
Trading tips
Long positions can be opened at the level of 1289.50 with the target at 1300.00 and stop loss at 1286.00. Implementation period: 1–2 days.
Short positions can be opened at the level of 1280.00 with the target at 1270.25 and stop loss at 1284.00. Implementation period: 1–2 days.
XAU/USD is strengthening due to the poor macroeconomic statistic publication in the USA and political tense between USA and North Korea.
Yesterday the Initial Jobless Claims data were published, which were worse than expected: the index grew from 241 to 244K, as the experts supposed the fall to 240K. In addition, the July Producer Price Index unexpectedly falls by 0.1%, which resulted in the decrease of the YoY indicator. The USD is also under the pressure due to New York Fed’s president William Dudley’s statement, who expressed the fear of the low inflation. In the current situation gold is an attractive asset for the investors in the short term.
Today’s key release is Consumer Price Index publication in the USA. If the indicator is worse than expected, the pair will too likely to renew the year highs.
Support and resistance
On the daily chart the instrument is trying to consolidate above the level of 1290.00. Bollinger Bands are pointed upwards; the price range stays the same, reflecting the high possibility of the development of the upward trend. MACD histogram is in the positive zone, keeping buy signal. Stochastic is ready to enter the overbought area.
Support levels: 1265.00, 1270.40, 1274.75, 1280.75.
Resistance levels: 1289.00, 1296.20, 1307.00.
Trading tips
Long positions can be opened at the level of 1289.50 with the target at 1300.00 and stop loss at 1286.00. Implementation period: 1–2 days.
Short positions can be opened at the level of 1280.00 with the target at 1270.25 and stop loss at 1284.00. Implementation period: 1–2 days.