XAU/USD: technical analysis 12.08.2019

XAU/USD: technical analysis 12.08.2019

Current trend

XAU/USD continues to consolidate in the side channel. The instrument is now testing the level of 1496.00, which coincided with the middle line of Bollinger Bands. Assuming the pair’s ability to cross this level, the mark of 1489.50-1484.38 can be targeted if holding short positions. If the “bulls” manage to raise the rate above the level of 1500.00 (Murray [8/8]), the correction can continue to the area of 1506.25, 1509.47. There is a high chance of a downward reverse from the area of levels 1509.47-1510.00. Technical indicators reflect the moderate maintenance of the downward trend. Bollinger Bands are converging on the background of bearish momentum. MACD volumes are decreasing in the positive zone. Stochastic’s lines are pointed downwards and are reaching the oversold area.

Support and resistance

Support levels: 1495.19, 1489.50, 1484.38.
Resistance levels: 1500.00, 1506.25, 1509.47.

Trading recommendations

Short positions can be opened below the level of 1495.19 with the target at around 1489.50 and stop-loss 1497.00.
Long positions can be opened above the level of 1500.00 with the target at around 1506.25 and stop-loss 1498.00.