The pair XAU/USD broke through the important support levels of 1277.00 (Fibonacci level 61.8% correction to the wave of decline since July 2016), 1275.00 (the short-term important support level through which the EMA200 passes and the top line of the descending channel on the 1-hour chart).
Indicators OsMA and Stochastics on the 1-hour, 4-hour and daily charts are deployed to short positions.
With the opening of today's trading day, the pair XAU/USD is declining. If the reduction continues, the targets will be support levels 1264.00 (March highs and EMA144 on the 4-hour chart), 1260.00 (February and March highs), 1256.00 (EMA200 on the 4-hour chart), 1248.00 (Fibonacci level 50.0%).
Nevertheless, while the pair XAU/USD is above the support level of 1240.00 (EMA200 on the daily chart), it keeps positive dynamics. The pair XAU/USD remains within the upward channel on the daily chart, the upper limit of which runs near the level of 1300.00, and it will be the immediate goal in case of resumption of growth. But for this, the pair XAU/USD needs to gain a foothold above the local maximum near the 1292.00 mark (April highs).
Support levels: 1270.00, 1264.00, 1260.00, 1256.00, 1248.00, 1240.00, 1220.00
Resistance levels: 1277.00, 1287.00, 1292.00, 1300.00
Trading recommendations
Sell in the market. Stop-Loss 1278.00. Take-Profit 1270.00, 1264.00, 1260.00, 1256.00, 1248.00, 1240.00
Buy Stop 1278.00. Stop-Loss 1272.00. Take-Profit 1287.00, 1290.00, 1300.00, 1305.00
