XAU/USD: technical analysis 20.08.2019

XAU/USD: technical analysis 20.08.2019

Current trend

On the 4-hour chart, the instrument is moderately falling along the lower line of the Bollinger Bands. The price went down below the level of 1500.00 (Murray [4/8]) and can fall further to the level of 1492.19 that holds the gate for its fall to 1488.75, 1484.38 (Murray [3/8]) to support-line. If the “bulls” manage to raise the rate above the level of 1503.00, the correction can continue to the area of 1510.00, which coincided with the middle line of Bollinger Bands. Technical indicators reflect the moderate maintenance of the current downward trend. Bollinger Bands are pointed downwards. MACD is slowly growing in the negative zone. Stochastic’s lines are pointed downwards and are reaching the oversold area.

Support and resistance

Support levels: 1492.19, 1488.75, 1484.38.
Resistance levels: 1500.00, 1503.00, 1510.00.

Trading recommendations

Long positions can be opened above the level of 1503.00 with the target at around 1510.00 and stop-loss 1501.70.
Short positions can be opened below the level of 1492.19 with the target at around 1484.38 and stop-loss 1494.70.