XAU/USD: technical analysis 20.01.20
The XAU/USD pair begins today’s trading with a slight bullish bias. Now the price is approaching a strong resistance in the region of 1562.50. Judging by the downward reversal of Stochastic the downward correction is possible soon. However, the breakout of 1562.50 and sustained trading above it will be a signal for upward trend formation and give a prospect of growth to the 1568.44 resistance.
The pullback below 1558.59 could lead the price back to 1554.50 level, which coincided with the middle line of Bollinger Bands. There is a chance of an upward rebound, while its breakdown would allow the fall to continue to the area of 1549.27-1546.88.
The technical picture is mixed.
Bollinger Bands are pointed sideways.
MACD volumes are growing in a positive zone, keeping a buy signal.
Stochastic is pointed downwards, reflecting the high possibility of the downward movement formation.
Support and resistance
Support levels: 1554.50, 1549.27, 1546.88.
Resistance levels: 1562.50, 1568.44, 1572.00.
Short positions can be opened below the level of 1554.50 with the target at around 1549.27 and stop-loss at 1556.10.
Long positions can be opened above the level of 1562.50 with the target at around 1568.44 and stop-loss at 1560.00.