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XAU/USD: technical analysis 18.12.19

Current trend

The XAU/USD pair begins today’s trading with a slight bullish bias. The instrument is now testing the resistance level of 1477.14. If the "bulls" manage to raise the rate above this level, the growth can continue to the area of 1480.47 mark. This level can activate a downward rebound, while its breakout would give a prospect of growth to the 1484.38 resistance.

Alternative scenario

The pullback and pair’s sustained below 1474.87 will be a signal for downward trend formation and let the price test the 1472.66 support. One may speak about downward movement continuation after the price consolidates below the level of 1472.00. In this case, the next targets of sellers will be the level of 1468.75.

Technical indicators

Technical indicators mostly maintain a moderate buy signal.

Bollinger Bands are pointed upwards.

MACD is slowly growing in the positive zone.

Stochastic is pointed downwards, reflecting the high possibility of the downward movement formation.

Support and resistance

Support levels: 1474.87, 1472.66, 1468.75.
Resistance levels: 1477.14, 1480.47, 1484.38.

Trading recommendations

Short positions can be opened below the level of 1474.87 with the target at around 1472.66-1470.00 and stop-loss at 1476.10.
Long positions can be opened above the level of 1477.14 with the target at around 1480.47 and stop-loss at 1476.14.

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