XAU/USD: gold prices are going down
07 February 2019, 08:34
| Scenario | |
|---|---|
| Timeframe | Intraday |
| Recommendation | BUY |
| Entry Point | 1304.58 |
| Take Profit | 1313.00 |
| Stop Loss | 1300.00 |
| Key Levels | 1286.31, 1288.52, 1292.69, 1298.32, 1304.21, 1308.93, 1313.00, 1316.67, 1320.87 |
| Alternative scenario | |
|---|---|
| Recommendation | SELL STOP |
| Entry Point | 1299.95, 1298.30 |
| Take Profit | 1292.69, 1288.52 |
| Stop Loss | 1306.00 |
| Key Levels | 1286.31, 1288.52, 1292.69, 1298.32, 1304.21, 1308.93, 1313.00, 1316.67, 1320.87 |
Current trend
Gold prices dropped significantly on Wednesday, continuing the development of the "bearish" impetus formed at the end of the previous trading week. Reducing the instrument is facilitated by strengthening of USD, despite a number of extremely weak macroeconomic releases from the United States in recent days.
In turn, the continuing tension in relations between the US and China, as well as the uncertain prospects of the upcoming Brexit, impedes the emergence of a more confident negative dynamics in the instrument.
Additional pressure on the pair today is exerted by the speech of the US Federal Reserve Chairman, Jerome Powell, at the opening of the Teacher Town Hall Meeting in Washington. However, the speech of the head of the regulator failed to somehow clarify the prospects for US monetary policy and was devoted mainly to education.
Support and resistance
Bollinger Bands in D1 chart show moderate growth. The price range is actively narrowing, reacting to the emergence of "bearish" trend in the short term. MACD is declining keeping a stable sell signal (located below the signal line). Stochastic keeps a confident downward direction but is already approaching its lows, which indicates the descending risks of oversold instrument in the ultra-short term.
Existing short positions should be kept until the situation clears up.
Resistance levels: 1304.21, 1308.93, 1313.00, 1316.67, 1320.87.
Support levels: 1298.32, 1292.69, 1288.52, 1286.31.
Trading tips
Long positions should be opened if the instrument reverses upwards from the current levels followed by the breakout of 1304.21. Take profit — 1313.00. Stop loss — 1300.00.
The return of "bearish" trend with the breakdown of the level of 1300.00 or 1298.32 may become a signal for new sales with the target at 1292.69 or 1288.52. Stop loss — 1300.00 or 1306.00.
Implementation time: 2-3 days.
Gold prices dropped significantly on Wednesday, continuing the development of the "bearish" impetus formed at the end of the previous trading week. Reducing the instrument is facilitated by strengthening of USD, despite a number of extremely weak macroeconomic releases from the United States in recent days.
In turn, the continuing tension in relations between the US and China, as well as the uncertain prospects of the upcoming Brexit, impedes the emergence of a more confident negative dynamics in the instrument.
Additional pressure on the pair today is exerted by the speech of the US Federal Reserve Chairman, Jerome Powell, at the opening of the Teacher Town Hall Meeting in Washington. However, the speech of the head of the regulator failed to somehow clarify the prospects for US monetary policy and was devoted mainly to education.
Support and resistance
Bollinger Bands in D1 chart show moderate growth. The price range is actively narrowing, reacting to the emergence of "bearish" trend in the short term. MACD is declining keeping a stable sell signal (located below the signal line). Stochastic keeps a confident downward direction but is already approaching its lows, which indicates the descending risks of oversold instrument in the ultra-short term.
Existing short positions should be kept until the situation clears up.
Resistance levels: 1304.21, 1308.93, 1313.00, 1316.67, 1320.87.
Support levels: 1298.32, 1292.69, 1288.52, 1286.31.
Trading tips
Long positions should be opened if the instrument reverses upwards from the current levels followed by the breakout of 1304.21. Take profit — 1313.00. Stop loss — 1300.00.
The return of "bearish" trend with the breakdown of the level of 1300.00 or 1298.32 may become a signal for new sales with the target at 1292.69 or 1288.52. Stop loss — 1300.00 or 1306.00.
Implementation time: 2-3 days.
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