XAU/USD: technical analysis 13.03.2019

XAU/USD: technical analysis 13.03.2019

Current trend

On the 4-hour chart, XAU/USD is growing along the upper line of the Bollinger Bands. The instrument is now testing the level of 1304.68 (Murray [3/8]). Assuming the ability to cross 1304.68 mark, the level 1312.50 (Murray [4/8]) can be targeted if holding long positions. There is a chance of a downward rebound around the 1312.50 level, while its breakout would allow the raise to continue. Failure to conquer the 1304.68 mark seems fetching the XAU/USD to 0.1296.87 support, which is the the middle line of Bollinger Bands.
Alternatively, breakdown of 1296.87 (Murray [2/8]) will push the price back to 1289.06 (Murray [1/8]). Technical indicators mostly keep a buy signal. MACD volumes are increasing in the positive zone. Stochastic is in the overbought area and is pointed upwards. Bollinger Bands are directed up.

Support and resistance

Support levels: 1296.87, 1289.06, 1281.25.
Resistance levels: 1304.68, 1312.50, 1320.31.

Trading recommendations

Long positions can be opened above the level of 1304.68 with the target at around 1312.50 and stop-loss 1302.60.
Short positions can be opened below the level of 1296.87 with the target at around 1289.06 and stop-loss 1288.00.