Header Ads

XAU/USD: general review 12 June 2017, 13:23


Scenario
Timeframe Intraday
Recommendation BUY STOP
Entry Point 1270.10
Take Profit 1276.00
Stop Loss 1268.00
Key Levels 1255.00, 1260.80, 1264.00, 1270.00, 1276.80, 1385.00
Alternative scenario
Recommendation SELL STOP
Entry Point 1263.90
Take Profit 1260.00
Stop Loss 1266.00
Key Levels 1255.00, 1260.80, 1264.00, 1270.00, 1276.80, 1385.00

Current trend
During Friday trading the rate of XAU/USD dropped to the level of 1264.00 showing the third day of decreasing in a row. The sales of gold are carried out in view of anoter FOMC meeting schedulled for Wednesday. The majority of forecasts indicate possible increase of the interest rate, that is why the investors leave gold for other assets.
The price of the precious metal was also influenced by certain release of geopolitical tension. A hearing in the Investigative Committee of the US Senate at which the former FBI head made a statement, did not lead to direct accusations of the current head of the White House, and the talks about the upcoming impeachment of Donald Trump ceased.
A central event of the current week will be the meeting of the Open Markets Committee. According to Bloomberg, 94.8% of market participants expect the interest rate to be increased. The most interesting twist will be the tone of the follow-up statement. If FOMC hints that this increase of the interest rate won't be the last in the current year, one may expect further strengthening of USD and decrease of gold prices.
Support and resistance
On the H4 chart XAU/USD continues to correct from the level of 1296.00 consolidating on the level of 1264.00. MACD indicator is above the signal line with its volumes growing. Stochastic lines are directed upwards and are moving away from the overbought zone. The signals of the indicators do not confirm each other.
Support levels: 1264.00, 1260.80, 1255.00.
Resistance levels: 1270.00, 1276.80, 1385.00.

Trading tips
The pair may be bought after the price consolidates above 1270.00 with targets at 1276.00 and stop-loss at 1268.00.
Short positions will be relevant below the level of 1264.00 with targets at 1260.00 and stop-loss at 1266.00.
The period of implementation is 1-2 days. 
Από το Blogger.