XAU/USD: technical analysis 10.12.19

Current trend

XAU/USD continues to consolidate in the side channel after a significant decline over the past four days. In spite of this, the pair has the potential to further decline. If the sellers manage to decline the rate below the level of 1458.93, the downward dynamic can continue to the area of 1457.03 support. This mark will be key for the sellers. The breakdown of 1457.03 will give a prospect of falling to 1453.13.

Alternative scenario

One may speak about downward movement continuation after the price consolidates above the support level of 1465.33. In this case, the next targets of buyers will be the level of 1468.75, which coincided with the middle line of Bollinger Bands. There is a chance of a downward rebound, while its breakout will be a signal for uptrend resumption and let the price growth to 1472.66.

Technical indicators

Technical indicators mostly keep a sell signal, but the upward correction is possible in the short term.

Bollinger Bands are pointed downwards.

MACD is growing in the negative zone.

Stochastic is pointed upwards, reflecting the high possibility of upward movement formation.

Support and resistance

Support levels: 1460.94, 1457.03, 1453.13.
Resistance levels: 1464.84, 1468.75, 1472.66.

Trading recommendations

Short positions can be opened below the level of 1460.94 with the target at around 1457.13 and stop-loss at 1462.00.

Long positions can be opened above the level of 1465.33 with the target at around 1468.75 and stop-loss at 1464.33.

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