At the moment the spot price of gold has reached high levels. On the hourly chart the pair XAU/USD is near support level of 1227.00 (ЕМА200 and bottom line of the ascending channel) and 1230.00 (ЕМА144). On the weekly chart the price rebounded from strong resistance levels of 1255.00 (ЕМА200) and 1237.00 (ЕМА144).
On 4-hour chart the indicators OsMA and Stochastic recommend to open short positions; however the price is supported by the level of 1227.00 (ЕМА50). On the daily chart it looks like a flat.
The price needs strong momentum to determine future movement direction. Positive data on the US labor market will put pressure on the price of gold.
If the price consolidates below the level of 1220.00, it will create risks of decline in price. The opposite scenario might take place if the price breaks down resistance level of 1255.00 and go up to 1300.00 (highs of 2015), 1385.00 (highs of 2014), 1435.00 (highs of 2013).
However, it is likely that the pair will be in flat between the levels of 1200.00 and 1270.00 until 16 March when the US fed will adopt decision on rates.
Strong fluctuation might take place on 10 March (meeting of ECB) and 15 March (meeting of the Bank of Japan)
Support levels: 1200,00, 1220.00, 1227.00 and 1230.00.
Resistance levels: 1255.00, 1300.00 and 1385.00.
Sell Stop: 1220.00.
Targets: 1200.00, 1170.00, 1160.00, 1140.00, 1100.00 and 1060.00.
Buy Stop: 1245.00.
Targets: 1260.00, 1300.00, 1385.00 and 1400.00.