LiteForex - Analytics


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    XAU/USD: between 1203.00 and 1218.00. Technical analysis as of 03.06.2016.

    Review and evolution
    In anticipation of May's US labor market statistics, USD quotes are trading in a narrow range this week between a support level of 1203.00 (ЕМА144 on the daily chart) and a resistance level of 1218.00 (23,6% Fibonacci retracement to a descending wave since October 2012 and the lower line of an ascending channel on the daily chart).

    Investors demonstrate cautious behaviour ahead of the NFPR release.

    Our opinion

    OsMA and Stochastic indicators take sellers' side on the weekly chart but reverse and point to long positions on the daily chart.

    Weak data on non-farm payrolls will drop the dollar all around the market. If a resistance level of 1218.00 is broken, gold may rise to 1240.00 (ЕМА144, ЕМА200 on the H4 chart, ЕМА50 on the daily chart). At the same time, a further growth seems to be a disputable prospect Only if a resistance level of 1255.00 (ЕМА200 on the weekly chart) is broken, the price may continue to rise within an upward channel on the weekly chart with a target at 1300.00, 1323.00 (38,2% Fibonacci level).

    However, gold quotes are likelier to continue dropping. The rate and strength of a downward trend will be dependent on the data to be published today at 14:30 (GMT 2).

    Once a level of 1193.00 is broken, a downward trend may resume.

    Support levels: 1203.00, 1200.00, 1193.00
    Resistance levels: 1218.00, 1240.00, 1255.00, 1280.0, 1300.00

    Trading tips
    Buy Stop 1225.00. Stop-Loss 1215.00. Targets 1240.00, 1248.00, 1255.00, 1263.00, 1280.00, 1300.00
    Sell Stop 1205.00. Stop-Loss 1220.00. Targets 1200.00, 1193.00, 1190.00

    Indicators support sellers
    Indicators support sellers

    between 1218.00 and 1203.00
    between 1218.00 and 1203.00

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