XAU/USD: TECHNICAL ANALYSIS 01.11.2019
XAU/USD quotes attempted to grow, but reaching 1513.59 marks moved to a downward correction. If the current trend maintains, the pair can reach the first support at 1507.81. This level seems strong support in the short term period. There is a chance of an upward rebound, while its breakdown will give the prospect of decline to the levels of 1504.62-1500.00.
Rebound from the 1507.81 support will let the price to retest 1513.59 resistance line. However, the upward trend will be restored after the price is set above the level of 1517.91. In this case, the buyers will aim for the level of 1523.44.
The technical picture is mixed. MACD histogram is in the positive zone keeping a signal for the opening of buy positions. Bollinger Bands are diverging on the background of bullish momentum. Stochastic has left the overbought area and is pointed downwards, reflecting the high possibility of the downward movement formation.
Support and resistance
Support levels: 1507.81, 1504.62, 1500.00.
Resistance levels: 1513.59, 1517.91, 1523.44.
Short positions can be opened below the level of 1507.81 with the target at around 1504.62 and stop-loss at 1508.81.
Long positions can be opened above the level of 1513.59 with the target at around 1517.91 and stop-loss at 1512.30.