XAU/USD resumed its decline on Friday. However, there was no opportunity to open short trade as the price did not approach to the MA55 balance line. The precious metal asset was under pressure on Friday because of the FOMC members statements. Those comments raised rates hike odds. It is to say, that those statements are nothing mare than just words. However, they influence investors and we advise to pay attention to them. There is a probability of further decline in the next five days.
There is the uptrend on the Weekly chart as the price is above the MA55. There was a moderate growth last week, although the trendline was not broken through. The price bounced off the trendline and reversed in the downside direction. We expect the negative dynamics to continue this week.
There is the downtrend on the Hourly chart as the MA-channel goes downwards and the price is below the MA55. WE advise to wait until the price is back to the MA55 balance line in order to take any trading decision.
XAG/USD accelerated its decline on Friday and did not approach the MA55 balance line. There was no opportunity to open short trades. We have missed a considerable decline and here lies the negative aspect of this strategy. However, it is too risky to open trades far from the MA55 balance line and we have to wait for other opportunities.
There is the uptrend on the Weekly chart as the price is above the MA55. XAG/USD reached the trendline at 20,00 and then reversed. We expect the asset to decline in the next five days.
There is the downtrend on the Hourly chart as the MA-channel goes downwards and the price is below the MA55. WE advise to avoid trading as the price is close to the lower side of the MA-channel.