XAU/USD: technical analysis 16.10.2019
On 4-hour chart, XAU/USD is in the stage of upward correction after falling to the level of 1477.15. At the moment has met the significant resistance around of the level 1484.61. Assuming the pair’s ability to cross this level, the mark of 1488.82 can be targeted if holding long positions. The level of 1488.82 (corresponds to the middle line of Bollinger Bands) seem a key correction target. There is a chance of an downward rebound, while its breakout would allow the growth to continue to the area of 1492.19 level.
The downward trend will be restored after the price is set below the level of 1476.56. In this case, the next targets of sellers will be the level of 1468.75, which is the key level for the sellers in shor term period.
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. The volumes of MACD histogram are growing in the negative zone. Stochastic is pointed upwards, reflecting the high possibility of the upward movement formation.
Support and resistance
Support levels: 1476.56, 1468.75, 1460.94.
Resistance levels: 1484.61, 1488.82, 1492.19.
Short positions can be opened below the level of 1476.56 with the target at around 1468.75 and stop loss at 1478.80.
Long positions can be opened above the level of 1484.61 with the target at around 1488.82-1492.19 and stop loss at 1482.30.