XAU/USD: technical analysis 02.10.2019
XAU/USD is in the stage of downward correction after raising to the level of 1487.21. If the sellers manage to decline the rate below the level of 1476.56 , the correction can continue to the area of 1468.75 (Murray [2/8]). If the instrument cannot consolidate below the level of 1476.56 during short term period, it will begin to grow to the area of 1484.38 (Murray [3/8]), which coincided with the middle line of Bollinger Bands. The upward trend will be restored after the price is set abiove the level of 1487.21. In this case, the buyers will aim for the level of 1494.39. Technical indicators maintain a sell signal. Bollinger Bands and Stochastic are pointed downwards. MACD volumes are decreasing in the negative zone, reflecting the possibility of the upward movement formation.
Support and resistance
Support levels: 1476.56, 1468.75, 1462.00.
Resistance levels: 1484.38, 1487.21, 1494.39.
Short positions can be opened below the level of 1476.56 with the target at around 1468.75 and stop-loss 1478.80.
Long positions can be opened above the level of 1487.21 with the target at around 1494.39 and stop-loss 1485.20.