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XAU/USD: technical analysis 02.12.2019

Current trend

XAU/USD is in the stage of a downward correction after growing to the level of 1466.51. The first target of the correction is the area of levels 1458.00-1457.03, which corresponds to the middle line of Bollinger Bands. There is a chance of an upward rebound, while its breakdown would allow the fall to continue to the area of 1453.13. This level seems a key mark for the sellers. The decisive breakdown of 1453.13 could trigger a pair’s active decline to the 1449.13 support.

Alternative scenario

The pullback above 1461.00 could lead the price back to the 1462.89-1464.84 resistance zone. One may speak about upward movement continuation after the price consolidates above the resistance level of 1466.51. In this case, the next targets of buyers will be the level of 1468.75-1469.62.

The technical picture is mixed.
Bollinger Bands are pointed sideways.
Stochastic is pointed downwards, reflecting the high possibility of the downward movement formation.
MACD histogram is ready to enter the positive zone and form a buy signal.

Support and resistance

Support levels: 1457.03,1453.13, 1449.22.
Resistance levels: 1460.94, 1464.84, 1468.75.

Trading recommendations

Short positions can be opened below the level of 1457.03 with the target at around 1453.13 and stop-loss at 1458.03.
Long positions can be opened above the level of 1461.00 with the target at around 1464.84 and stop-loss at 1459.70.

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