XAU/USD: technical analysis 21.02.20
On the 4-hour chart, the instrument is growing along the upper line of the Bollinger Bands. At the moment the price has met the resistance at the level of 1626.41. Assuming the pair’s ability to cross this level, the mark of 1630.00-1632.81 can be targeted if holding long positions.
The downward rebound from 1526.41 and pullback below 1623.47 could be a sign of a downward correction. In this case, the pair will have a potential for a further decline to 1621.09 support. The breakdown of this level will confirm the downward correction signal and give a prospect of decline to 1617.19-1613.28.
Technical indicators maintain a buy signal.
Bollinger Bands are pointed upwards.
MACD is growing in a positive zone.
Stochastic is pointed upwards, reflecting the high possibility of upward movement formation.
Support and resistance
Support levels: 1623.47, 1621.09, 1617.19, 1613.28.
Resistance levels: 1626.41, 1630.00, 1632.81.
Short positions can be opened below the level of 1623.47 with the target at around 1621.09-1617.19 and stop-loss at 1625.00.
Long positions can be opened above the level of 1626.41 with the target at around 1630.00 and stop-loss at 1625.10.