General analysis XAUUSD for 19.11.2021

Current Dynamics

This week XAUUSD is trading in the price range of 1849.00- 1872.00. Such dynamics is formed due to short-term speculative positions. On Thursday, reaching the level of 1868, which is a local peak, the number of long positions has sharply decreased. Besides, in the second half of the day the dollar was supported by the speech of Raphael Bostic, the head of the Federal Reserve Bank of Atlanta, who announced about possible acceleration of monetary stimulus withdrawal, in order to raise the key rate in 2022.

The strengthening dollar position is limiting the upside potential of gold. A large part of the Forex market has given up investing in the metal and returned to trading in currencies, as weak EUR and JPY are now a tool for generating quick profits. At the same time high inflationary risks have formed a strong support for gold. Market participants are awaiting the announcement of specific timing and the Fed's monetary policy plans.

Today at 15:30 (GMT+2), statistics on the number of construction permits issued in the U.S. in October will be released. Fed officials Waller and Clarida will speak at 17:45 and 19:15 (GMT+2).

Support and resistance levels

On the 4-hour chart, the instrument is testing the Bollinger Band Average, which is the nearest resistance level. The indicator is turning sideways and the price range is not significantly reduced, indicating a correction. MACD histogram confirms the presence of corrective dynamics. Stochastic does not give a signal to open positions.

• Support levels: 1795.00, 1814.10, 1830.65, 1849.30.
• Resistance levels: 1861.65, 1872.70, 1882.45, 1890.10, 1901.95.

Trading scenarios

• It is possible to open long positions above the level of 1865.00 with a target of 1878.00 and a stop-loss at the level of 1853.50. Implementation period: 2-3 days.
• Short positions should be opened below the level of 1856.05 with a target of 1840.70 and a stop-loss at the level of 1865.00. Implementation period: 1-2 days.