XAU/USD, H4
The pair has been trading within an ascending channel since the beginning of the year. On Wednesday XAU/USD has hit four-month highs at 1345.64, then been corrected and now is trading around support level of 1327.49. Bollinger bands are directed upwards, the price can go up to the levels of 1333.65 and 1345.64 (middle and upper MAs of the indicator). Stochastic lines have crossed and turned up, giving a signal to buy. However, MACD histogram is going to enter negative zone creating sell signal. Moreover, MACD indicator forms a divergence with the price chart, which a clear sign of strong fall.
XAU/USD, D1
On the daily chart Bollinger bands are also directed upwards, the price chart rebounded off the upper line and is going down to the levels of 1310.26 и 1289.61. MACD histogram is in positive zone, but crosses signal line from above, forming sell signal. Stochastic lines have left the overbought zone, giving the same signal. Moreover, Stochastic lines form a divergence with the price chat confirming downward correction.
Key levels
Support levels: 1327.49, 1310.26, 1289.61, 1255.59.
Resistance levels: 1345.64, 1366.14, 1389.22.
Trading tips
We expect the price to go up a little, but then turn down. Short-term buy trades can be opened below 1345.64; however, sell positions are more preferable. Short positions with targets at 1289.61 can be opened at 1318.00.
Дмитрий Золотов
Аналитик группы компаний LiteForex