XAU/USD: Near Resistance Level of 1258.00

XAU/USD: Near Resistance Level of 1258.00

21 March 2016, 17:58
Roberto Jacobs

XAU/USD: Near Resistance Level of 1258.00

On the weekly chart the pair XAU/USD has rebounded from strong resistance level of 1258.00 (ЕМА200) and is going down to support level of 1238.00 (ЕМА144). The indicators OsMA and Stochastic are reversing towards the short positions. On the daily and 4-hour charts the indicators are giving sell signals.

Strong level of support can be at the line of 1218.00 (Fibonacci 23.6%, ЕМА200 on 4-hour chart), breakout of this level can trigger further decline in the pair XAU/USD to 1157.00 (ЕМА200, ЕМА144 on the daily chart).

However, fundamental data is in favour of the buy positions. It is possible that the price will start to rise again, not reaching support levels of 1232.00 and 1238.00. For the rise in the pair XAU/USD the price shall consolidate above the level of 1280.00 (highs of March) with the targets of 1300.00 and 1323.00 (Fibonacci 38.2%).

Support levels: 1232.00 and 1218.00.
Resistance levels: 1258.00, 1270.00, 1280.00, 1300.00 and 1323.00.

Trading Tips

Sell Stop: 1239.00. Stop-Loss: 1254.00. Targets: 1232.00, 1218.00 and 1157.00.

Buy Stop: 1259.00. Stop-Loss: 1240.00. Targets: 1280.00, 1300.00, 1323.00, 1385.00 and 1435.00.



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