XAU/USD: technical analysis 12.08.20Published: 12 August 2020
On the 4-hour chart, the instrument keeps a negative dynamic. The price has tested the support level of 1862.41 but still cannot break through it. The downward trend will be restored after the price is set below this level. In this case, the sellers will aim for the 1843.75 level.
If the "bulls" manage to raise the rate above the level of 1883.75, the correction can continue to the area of 1890.00-1894.12. This area seems a strong hurdle, which can activate a downward rebound of the price. Meanwhile, the breakout of the upper border (1894.12) will let the price re-test the 1906.25-1914.06 resistance area.
Technical indicators mostly keep a sell signal, but the upward correction is possible in the short term.
Bollinger Bands are diverging on the background of bearish momentum.
MACD is growing in the negative zone.
Stochastic is preparing to exit the oversold zone and is directed upwards, signaling the development of an upward correction.
Support and resistance
Support levels: 1875.00, 1870.00, 1862.41, 1855.00.
Resistance levels: 1883.75, 1890.00, 1894.12.
Short positions can be opened below the level of 1862.00 with the target at around 1855.00 and stop-loss at 1864.30.
Long positions can be opened above the level of 1883.75 with the target at around 1890.00 and stop-loss at 1882.00.