XAU/USD: Technical Analysis: Important Support Levels Broken Through
Yuri Papshev | Jul 10, 2017 12:50
XAU/USD continues to decline actively. At the beginning of today's European session, the XAU/USD was trading near the mark of 1206.00 dollars, which was $5 less than the closing price on Friday. The pair broke through the important support levels 1241.00 (ЕМА200, ЕМА144 on the daily chart), 1220.00 (Fibonacci level 38.2% correction to the wave of decline since July 2016).
The negative dynamics of the gold/dollar pair prevails. Strengthening the currency market, the dollar also contributes to lower prices for precious metals. Despite the fact that unemployment in the USA increased in June from 4.3% to 4.4%, and the average hourly earnings in the US for June was 0.2% (forecast was 0.3%), in general, labour market data in the US, published last Friday, can be called strong. The NFP indicator in June was 225,000 (against the forecast of 179,000).
Indicators OsMA and Stochastics on the 4-hour, daily, weekly charts went to the side of sellers.
Return to consideration of long positions will be possible after the return of the XAU/USD above the local resistance level of 1229.00. However, only after the recovery of the price above
Resistance levels 1248.00 (Fibonacci level 50.0%), 1241.00 we can talk about the return to the uptrend.
Support levels: 1200.00, 1185.00
Resistance levels: 1220.00, 1229.00, 1241.00, 1248.00, 1255.00
Trading recommendations
Sell Stop 1204.00. Stop-Loss 1214.00. Take-Profit 1200.00, 1185.00
Buy Stop 1214.00. Stop-Loss 1204.00. Take-Profit 1220.00, 1229.00, 1241.00, 1248.00, 1255.00
Disclosure: Views and material presented express the personal views of the author and are not a direct guide to conduct trading operations.
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