XAU/USD: technical analysis 03.04.20
XAU/USD is in the stage of a downward correction after growing to the level of 1620.11. At the moment the price has met the support at the level of 1608.24. Breakdown of this level and a sustained move below it will be a signal of the downward correction development and let the price decline to the area of 1600.00-1595.44 support. This level seems a key target of the correction. There is a chance of an upward rebound, while its breakdown would accelerate the fall towards 1585.63.
The upward rebound from 1608.25 and pullback above 1620.11 will give a prospect of growth to the area of 1625.00. This level seems a strong resistance, which can activate a downward reverse. However, the decisive breakout of 1625.00 is needed to indicate an upward trend resumption. In this case, the next targets of buyers will be the level of 1632.00-1635.00.
The technical picture is mixed.
Bollinger Bands are pointed sideways.
MACD is growing in a positive zone.
Stochastic is preparing to exit the overbought zone and is directed downwards, signaling the development of a downward correction.
Support and resistance
Support levels: 1608.24, 1600.00, 1595.44, 1585.63.
Resistance levels: 1620.11, 1625.00, 1632.00, 1635.00.
Short positions can be opened below the level of 1608.24 with the target at around 1600.00 and stop-loss at 1610.80.
Long positions can be opened above the level of 1625.00 with the target at around 1632.00 and stop-loss at 1623.00.