Forex Technical analysis by Atirox for XAU/USD

Current trend

XAU/USD continues to consolidate in the narrow side channel with the borders 1489.03-1492.22. If the sellers manage to decline the rate below the level of 1489.03, the falling can continue to the area of 1484.38. This level seem a key sellers' target for near-term period. The breakdown of this level will be a signal for downward trend formation and let the price fall to the level of 1480.47.
Alternative scenario.
One may speak about upward movement continuation after the price consolidates above the resistance level of 1493.39. In this case, the next targets of buyers will be the level of 1497.29-1500.00.
The technical picture is mixed. Bollinger Bands are pointed sideways. MACD volumes are insignificant in the negative zone and are moving along the zero line. Stochastic is pointed downwards, reflecting the high possibility of the downward movement formation.

Support and resistance

Support levels: 1489.03, 1484.38, 1480.47.
Resistance levels: 1493.39, 1497.29, 1500.00.

Trading recommendations

Short positions can be opened below the level of 1489.03 with the target at around 1484.38 and stop loss at 1490.63.
Long positions can be opened above the level of 1493.39 with the target at around 1497.29-1500.00 and stop loss at 1491.26.

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