Today, gold is traded in the narrow range and volumes are minimal.
On the weekly chart the pair XAU/USD fell below resistance level of 1258.00 (ЕМА200). The indicators OsMA and Stochastic started to give signals for short position. On the 4-hour chart the indicators are giving sell signals.
It is likely that the pair XAU/USD will go to 1250.00 (ЕМА50 on the 4-hour chart) and then, the pair can undergo downward correction to 1232.00 (ЕМА144 and bottom limit of the channel on the 4-hour chart), 1218.00 (Fibonacci 23.6%, ЕМА200 on the 4-hour chart and the bottom limit of the ascending channel on the daily chart).
Breakout of support level of 1218.00 will give a chance for the further decline in the pair XAU/USD to 1157.00 (ЕМА200, ЕМА144 on the daily chart).
An alternative scenario of the rise in the price of gold is possible if the pair XAU/USD consolidates above the level of 1280.00 (highs of March). The targets of the rise are the levels of 1300.00 and 1323.00 (Fibonacci 38.2%).
Support levels: 1250.00, 1232.00 and 1218.00.
Resistance levels: 1270.00, 1280.00, 1300.00 and 1323.00.
Trading tips
Sell on the market. Stop-Loss: 1258.00. Targets: 1250.00, 1232.00, 1218.00 and 1157.00.
Buy Stop: 1265.00. Stop-Loss: 1250.00. Targets: 1280.00, 1300.00, 1323.00, 1385.00 and 1435.00.
