XAU/USD: Price is Falling

 

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2016-07-13 10:57 (GMT+2) Gold

Current trend
At the beginning of the week, the price of gold moved away from its local highs amid a reduction in anxiety on the market, as worries arose after the results of the British referendum became known. As markets are calming down, demand for safe-haven assets such as gold is falling.
In addition, the instrument was pressured by strengthening in the US Dollar. The American currency was supported by strong data on the US labour market that was released last Friday. The data slightly increased a probability of monetary policy tightening by the Fed by the end of the year. However, the probability of an interest rate hike at the next meeting of the regulator remains at zero.

Support and resistance
Bollinger Bands on the daily chart is turning horizontally while the price range is narrowing. MACD is falling and giving a quite strong sell signal. Stochastic is falling as well and approaching the oversold zone.
The indicators recommend waiting for clearer trading signals.
Support levels: 1327.40 (local low), 1312.64, 1305.30 (28 June low), 1300.00, 1289.57, 1282.01, 1270.00, 1261.59, 1251.00 (24 June low), 1243.00.
Resistance levels: 1335.26 (local high), 1345.00, 1358.10, 1364.75, 1374.89 (11 July high).

Trading tips
Long positions can be opened after the breakout of the level of 1335.26 with the target at 1374.89 and stop-loss at 1315.00. Validity – 2-3 days.
Short positions can be opened after the breakdown of the level of 1327.40 with the target at 1300.00 and stop-loss at 1340.00. Validity – 2-3 days.

Scenario

Timeframe	Intraday
Recommendation	BUY STOP
Entry Point	1335.30
Take Profit	1374.89
Stop Loss	1315.00
Key Levels	1243.00, 1251.00, 1270.00, 1289.57, 1300.00, 1305.30, 1327.40, 1335.26, 1345.00, 1358.10, 1364.75, 1374.89

Alternative scenario

Recommendation	SELL STOP
Entry Point	1327.30
Take Profit	1300.00
Stop Loss	1340.00
Key Levels	1243.00, 1251.00, 1270.00, 1289.57, 1300.00, 1305.30, 1327.40, 1335.26, 1345.00, 1358.10, 1364.75, 1374.89

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YOU SHOULD NOT TAKE ANY MATERIAL posted on this BLOG AS RECOMMENDATIONS 
TO BUY OR SELL GOLD OR ANY OTHER INVESTMENT VEHICLE LISTED. 

 Do your own due diligence. 

No one knows tomorrow's price or circumstance. 
 I intend to portray my thoughts and ideas on the subject which may s be used as a tool for the reader. 
I do not accept responsibility for being incorrect in my speculations on market trend.