XAU/USD: technical analysis 11.02.2019

XAU/USD: technical analysis 11.02.2019

Current trend

On 4-hour chart, XAU/USD is correcting down from the 1315.58 mark. The instrument is now testing the level of 1310.00, which coincided with the middle line of Bollinger Bands.
The breakdown of the level 1310.00 will let XAU/USD fall to the lower border of Bollinger Bands 1304.68 (Murray [7/8]). There is a chance of an upward rebound here, while its breakdown would allow the fall to continue. Alternatively, breakout of 1320.31 (Murray [+1/8]) mark can accelerate XAU/USD towards 1328.13 (Murray [+2/8]) area.
Technical indicators reflect the relative calmness of the markets and sideways movement of the price.
Bollinger Bands are pointed sideways.
MACD volumes are in the positive zone and are moving along the zero line.
Meanwhile, Stochastic has left the overbought area and is pointed downwards,
reflecting the high possibility of the downward movement formation.

Support and resistance

Support levels: 1310.00, 1304.68, 1296.87.

Resistance levels: 1312.50, 1320.31, 1328.12.

Trading recommendations

Short positions can be opened below the level of 1310.00 with the target at around 1304.68 and stop-loss 1312.00.

Long positions can be opened above the level of 1312.50 with the target at around 1320.31 and stop-loss 1310.00.