XAU/USD: technical analysis 10.01.20
The XAU/USD pair begins today’s trading with a slight bearish bias. The instrument is now testing the support level of 1546.88. Assuming the pair’s ability to cross this level, the mark of 1540.14 can be targeted if holding short positions. The area of 1540.14 can activate an upward rebound, while its breakdown will be a signal for downward trend resumption and let the price fall to the area of 1537.37.
The pullback above 1553.71 will be a signal for the upward correction formation. The key target of the correction will be 1562.50 resistance, which coincided with the middle line of Bollinger Bands. There is a chance of a downward rebound from the 1562.50 level. However, the decisive break of 1562.50 is needed to indicate the upward trend resumption. In this case, the next targets of buyers will be the level of 1568.44.
Technical indicators maintain a sell signal.
Bollinger Bands are diverging on the background of bearish momentum.
MACD is growing in the negative zone.
Stochastic is pointed downwards.
Support and resistance
Support levels: 1546.88, 1541.14, 1537.37.
Resistance levels: 1553.71, 1556.47, 1562.50.
Short positions can be opened below the level of 1546.88 with the target at around 1541.14 and stop-loss at 1548.54.
Long positions can be opened above the level of 1553.71 with the target at around 1556.47 and stop-loss at 1552.80.