XAU/USD: technical analysis 15.01.20
On a 4-hour chart, XAU/USD is trading above its middle line of Bollinger bands suggesting bullish momentum. If the current trend maintains, the next target of the buyers will be 1554.69, then 1558.59 resistance area.
The pullback below 1546.88 and the pair’s sustained trading below this level will be a signal for downward correction formation and let the price decline to 1542.97-1540.85 support. Further close below this level may push XAU/USD even lower towards the area of 1539.16.
Technical indicators mostly maintain a buy signal.
Bollinger Bands are pointed sideways.
MACD volumes are actively decreasing in the negative zone.
Stochastic is pointed upwards, reflecting the high possibility of upward movement formation.
Support and resistance
Support levels: 1546.88, 1542.97, 1540.85.
Resistance levels: 1554.69, 1558.69, 1562.50.
Short positions can be opened below the level of 1546.88 with the target at around 1542.97 and stop-loss at 1548.20.
Long positions can be opened above the level of 1554.69 with the target at around 1558.69 and stop-loss at 1553.30.