Current trend

The XAU/USD pair is consolidating near the level of 1936.00. The day before, the instrument showed active growth, which was the market's reaction to macroeconomic statistics from the US. In particular, investors drew attention to the reduction in the Consumer Confidence Index in August from 114.0 points to 106.1 points, despite the fact that before the revision, the July figure was 117.0 points, and forecasts suggested its decline only to 116.0 points.

Today, the focus of the market will be on the August report from the Automatic Data Processing (ADP) on US private sector employment, as well as the second estimate of the annual dynamics of Gross Domestic Product (GDP) for the second quarter. Forecasts assume Employment Change growth of 195.0 thousand after rising by 324.0 thousand in the previous month, while GDP is expected to remain unchanged at 2.4%.

Tomorrow, investors will focus on Personal Spending statistics, which the US Federal Reserve uses as an additional marker of inflation, and on Friday the July report on the labor market will be published. Analysts' forecasts suggest an increase in Nonfarm Payrolls by 170.0 thousand, which is 17.0 thousand less than in July, and the Unemployment Rate is expected to remain at the previous level of 3.5%

Support and resistance

On the D1 chart Bollinger Bands are trying to reverse into the ascending plane. The price range is expanding but it fails to conform to the surge of "bullish" sentiments at the moment. MACD grows, preserving a stable buy signal (located above the signal line). In addition, the indicator is trying to consolidate above the zero level. Stochastic keeps the same confident upward dynamics, but is located in close proximity to its highs, indicating that the instrument is overbought in the near future.

Resistance levels: 1940.00, 1946.78, 1952.53, 1963.55.

Support levels: 1930.00, 1923.06, 1915.00, 1907.02.

Trading tips

Short positions may be opened after a breakdown of 1930.00 with the target at 1915.00. Stop-loss — 1940.00. Implementation time: 2-3 days.

The return of the "bullish" trend with the breakout of 1940.00 may become a signal for new purchases with the target of 1952.53. Stop-loss — 1934.00.