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XAU/USD: technical analysis 11.10.2019

Current trend

On 4-hour chart, XAU/USD is in the stage of upward correction after falling to the level of 1490.78. The first target of the correction is the level of 1500.00, which corresponds to the middle line of Bollinger Bands. The area of 1500.00 can prevent the instrument from growing, as the possibility of the reverse of the price is high there. Meanwhile, the breakout and pair’s sustained trading above of the level 1500.00 will let the price grow to the level of 1504.50.
Alternative scenario.
One may speak about downward movement continuation after the price consolidates below the support level of 1490.00. In this case, the next targets of sellers will be the level of 1484.38.
On 4-hour chart, technical picture is mixed. Bollinger Bands are pointed sideways. 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: 1492.19, 1488.12, 1484.38.
Resistance levels: 1500.00, 1504.50, 1507.81.

Trading recommendations

Short positions can be opened below the level of 1492.19 with the target at around 1488.12 and stop loss at 1493.19.
Long positions can be opened above the level of 1500.00 with the target at around 1504.50 and stop loss at 1498.70.

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