XAU/USD: technical analysis 23.05.2019
XAU/USD price continues to consolidate in the side channel after a significant decline over the last week. The instrument is now testing the support level of 1273.44 (Murray [2/8]). If the price is set below this level, the downward trend can restore, and the instrument can retest the support level of 1269.53 (Murray [1/8]). There is a high chance of an upward rebound from the level if 1269.53, while its breakdown can diver market to 1265.63 (Murray [0/8]) support zone. Pullback above 1274.74 (middle line of Bollinger Bands) could lead the price back to the 1277.34 (Murray [3/8]) level. Technical picture is mixed. Bollinger Bands are pointed downwards. MACD histogram is in the negative zone keeping a signal for the opening of sell positions. Stochastic’s lines are pointed downwards and are reaching the oversold area.
Support and resistance
Support levels: 1273.44, 1269.53, 1265.63.
Resistance levels: 1274.74, 1277.34, 1281.25.
Short positions can be opened below the level of 1273.44 with the target at around 1269.53 and stop-loss 1274.44.
Long positions can be opened above the level of 1274.74 with the target at around 1277.34 and stop-loss 1273.90.