Current trend

XAU/USSD continues to consolidate in the side narrow channel after a significant decline over the past three days. 1490.10-1493.85.
Meanwhile, the instrument has the potential for further decline.
If the sellers manage to decline the rate above the level of 1490.10, the fall can continue to the area of 1484.38. This level seems a key level for the sellers in a short term period. There is a high chance of an upward rebound while its breakdown would indicate a downward trend resumption.

Alternative scenario.
One may speak about upward movement continuation after the price consolidates above the resistance level of 1496.09. In this case, the next targets of buyers will be the level of 1500.00. The area of 1500.00-1503.11 seems a strong resistance area, which can activate the start of the downward correction.
Technical indicators mostly reflect the maintenance of moderate downward dynamics. The volumes of MACD histograms are decreasing in the positive zone. Stochastic is in the oversold zone and is pointed downwards. Bollinger Bands are pointed sideways.

Support and resistance

Support levels: 1490.10, 1484.38, 1476.63.
Resistance levels: 1493.85, 1500.00, 1503.11.

Trading recommendations

Short positions can be opened below the level of 1490.10 with the target at around 1484.38 and stop-loss at 1492.40.

Long positions can be opened above the level of 1496.09 with the target at around 1500.00 and stop-loss at 1494.09.

Prev. post

Turn back

Next post

Scroll Up