XAU/USD: analysis and forecast

Current trend

Yesterday the pair XAU/USD has been able to overcome resistance level of 1300.00 and reach the highs at 1305.00. However the pair was corrected down due to the strengthening of the US stocks. Investors are usually turn to the safe haven instruments when economic climate is unstable, and go back to highly volatile pairs as soon as there are signs of recovery.
Technical indicators confirm further fall. MACD histogram is in negative zone, its volumes are increasing. Stochastic lines are directed downwards. MA 20 has crossed MA 50 from above, forming a signal to sell.

Support and resistance

The closest support level is 1288.00; the next ones are 1285.00, 1280.00, 1277.20. Resistance levels are 1291.00, 1294.00, 1297.00, and 1300.00.

Trading tips

Most probable scenario is a development of the Bearish trend. Short positions can be opened below 1285.00 with targets at 1277.00. Pending buy orders can be paced above 1292.00.

Ilya Lashenko
Analyst of LiteForex Investments Limited

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