XAU/USD: technical analysis 19.11.2019

Current trend

On the 4-hour chart, the instrument is correcting down from the upper line of the Bollinger Bands (1475.21). Now the price is testing the support level of 1468.75. The breakdown of this level will let the price to decline to 1466.85 support, which coincided with the middle line of Bollinger Bands.
There is a high chance of an upward rebound, while its breakdown would allow the fall to continue to the area of 1460.94 support.

Alternative scenario

A rebound from the level of 1468.75 will lead the price to return to the area of morning highs surrounding 1475.21. The breakout of this level could trigger a pair’s fresh run-up to a 12-days high surrounding 1484.38.

The technical picture is mixed.
Bollinger Bands are pointed upwards.
The volumes of MACD histograms are slowly growing in the positive zone.
Stochastic has left the overbought area and is pointed downwards, reflecting the high possibility of the downward movement formation.

Support and resistance

Support levels: 1468.75, 1460.94, 1453.13.
Resistance levels: 1475.21, 1480.00, 1484.38.

Trading recommendations

Short positions can be opened below the level of 1466.85 with the target at around 1460.94 and stop-loss at 1468.85.
Long positions can be opened above the level of 1476.75 with the target at around 1480.00-1484.38 and stop-loss at 1474.10.

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