XAU/USD: technical analysis 04.06.20
On the 4-hour chart, the instrument keeps a positive dynamic amid the correction. The first strong resistance for the pair is located on the 1705.00 level. This mark can activate a downward rebound of the price. Meanwhile, the decisive breakout of 1705.50 will be a sign of the upward trend resumption and give a prospect of the growth to the area of 1710.94.
If XAU/USD cannot consolidate above the level of 1705.50 during the short-term period the downward trend restoration and retest of the level 1695.31 are possible. One may speak about downward movement continuation after the price consolidates below the support level of 1693.98. In this case, the sellers will aim for the 1689.21.
Technical indicators mostly keep a sell signal, but the upward correction is possible in the short term.
Bollinger Bands are diverging on the background of bearish momentum.
MACD is growing in the negative zone.
Stochastic has left the oversold area and is pointed upwards, reflecting the high possibility of upward movement formation.
Support and resistance
Support levels: 1695.31, 1693.98, 1689.21, 1687.50.
Resistance levels: 1705.50, 1710.94, 1715.00, 1718.75.
Short positions can be opened below the level of 1695.31 with the target at around 1690.00 and stop-loss at 1697.00.
Long positions can be opened above the level of 1705.50 with the target at around 1710.94 and stop-loss at 1704.20.