XAU/USD: technical analysis 07.10.2019
XAU/USD is in the stage of downward correction after raising to the level of 1512.65. The first target of the correction is the level of 1500.00 (Murray [4/8]), which corresponds to the middle line of Bollinger Bands. The area of 1500.00-1495.00 can activaye an upward rebound, while its breakdown would allow the fall to continue to the area of 1490.00. The upward trend will be restored after the price is set abiove the level of 1512.65. In this case, the buyers will aim for the level of 1515.63 (Murray [5/8]) - 1519.50. The area of 1519.50 can prevent the instrument from growing, as the possibility of the reverse of the price is high there. The technical picture is mixed. Bollinger Bands are converging on the background of bullish momentum. MACD volumes are decreasing in the positive zone. Stochastic is pointed sideways.
Support and resistance
Support levels: 1500.00, 1495.79, 14900.00.
Resistance levels: 1509.27, 1515.63, 1519.50.
Short positions can be opened below the level of 1500.00 with the target at around 1495.79 and stop-loss 1501.30.
Long positions can be opened above the level of 1509.27 with the target at around 1515.63 and stop-loss 1507.25.