XAU/USD: general analysis
Current trend
During the trading session on Wednesday the gold prices grew by 0.38% due to the weakening of the USD. The price met the resistance level of 1251.21 and was slightly corrected. The traders’ activity lowered in expectation of the Head of the FRS Janet Yellen Speech today (14:45 GMT+2). The investors are waiting for the signals about the interest rate rise. If Janet Yellen implies the possibility of the rise on the June meeting, the USD will be significantly supported in the short term, which leads to the lowering the metal prices to the level of 1240.37 and lower. The neutral mood of the commentaries will support the gold prices to grow to the area of 1260.00.
Support and resistance
The technical picture is mixed. The Bollinger Bands indicator is pointed upwards, reflecting the possibility of further growth. The MACD histogram is in the positive zone, its volumes decreasing, reflecting the lowering of the traders’ activity. In case of breakout of the level of 1251.21 the upward trend will develop further.
Support levels: 1244.17, 1237.86, 1230.84.
Resistance levels: 1251.21, 1260.18, 1268.51.
Trading scenario
Open short positions below the level 1244.17 with the target at 1237.86 and stop loss at 1246.17.
Open long positions above the level 1251.21 with the target at в районе 1260.18 and stop loss at 1248.20.
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