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XAU/USD: TECHNICAL ANALYSIS 06.11.2019

Current trend

The XAU/USD pair begins today’s trading with slight bullish bias due to correction. If the "bulls" manage to raise the rate above the level of 1487.25, the correction can continue to the area of 1489.30, 1492.19. The level of 1492.19 seems a key level for the buyers. There is a chance of a downward rebound, while its breakout will accelerate the pair towards continue 1495.16-1500.00.
Alternative scenario.
The downward trend will be restored after the price is set below the level of 1482.17. In this case, the next targets of sellers will be the level of 1479.29, which is a strong support zone. The breakdown and pair’s sustained trading below it will be a signal for downward trend formation and give a prospect of decline to the level 1476.56. 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 histogram is in the negative zone keeping a signal for the opening of sell positions. Stochastic is preparing to exit the oversold zone and is directed upwards, signaling the development of an upward correction.

Support and resistance

Support levels: 1484.38, 1479.29, 1476.56.
Resistance levels: 1487.25, 1489.30, 1492.19.

Trading recommendations

Short positions can be opened below the level of 1482.17 with the target at around 1479.29-1476.56 and stop-loss at 1484.17.
Long positions can be opened above the level of 1487.25 with the target at around 1489.30-1492.19 and stop-loss at 1486.00.

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