Gold closed yesterday below 1330.00 level and it is currently traded below that,since it is under some pressure following moderate dollar strength this morning. Hence it is back on September 1st levels.
Risk-on conditions have weighed as well, as N. Korea refrained from any missile or nuke tests over the weekend, and as hurricane Irma runs out of gas and heads north as a tropical storm, causing less damage than the worst case scenario.
Despite the weakness seen the last two days, XAUUSD presented a slight retracement in the hourly chart this morning, since it picked up at 1328.50 from 1323.40 lows. However the upwards was temporary since long down wicks can be observed on the latest 3 hourly bullish candles.
Therefore, we entered SHORT in the Market at 1327.07, by taking positions into two different time frames, i.e. 1- Hour and 4-hours . In both time frames, the pair in moving on the lower Bollinger Bands Pattern, while RSI is in both at around 35 looking for further intra-day weakness.
Hourly target was set at 1324.00, with support at 1328.90 (upper fractal in the 30M chart). The 4-hour targets were set at 1320.50 (based on ATR14) and 1313.00 (at the 61.8 Fibonacci level since 1300.00 break up on August 31. The support in this timeframe is at 1333.00 which is the 50-period SMA.
In the 1-hour chart, pair is below the 200-period SMA, while it did not manage to break the 20-period SMA for the last 3 consecutive sessions. Meanwhile in the 4-hour chart, XAUUSD broke the 50-period SMA on US Open yesterday, while it is important to mention that MACD (12,26,9) turned negative just today, since August 16.
Gold is still in a possible uptrend up, with resistance up to to 1360 high, in higher time-frames such as Weekly and Monthly.