GOLD Pattern Signals Continuation!

0
84
GOLD Pattern Signals Continuation!

GOLD Pattern Signals Continuation!

Gold has decreased a little after another false breakout above the immediate upside obstacles but it remains bullish due to USD’s drop versus its rivals. A USDX’s further drop should push the yellow metal towards the $2,000 level again.

The price of gold continues to move sideways in the short term, that’s why we have to wait for a fresh trading signal before taking action. The upside remains intact as long as it stays above the $1,900 psychological level. We could search for long opportunities from above $1,973 former high.

GOLD Pattern Signals Continuation!

Gold is stuck within the symmetrical triangle, so only a valid breakout will bring a clear direction. It’s trapped also between the Pivot Point ($1,938) and the R1 (1,969) levels. A breakout through one of these levels decides direction.

Another higher high, jump above $1,973 confirms a strong upside momentum, while a triangle’s downside breakout signals a larger corrective phase. A symmetrical triangle within an uptrend could signal upside continuation.

  • XAU/USD Trading Tips

A long opportunity should be validated by a bullish closure above $1,974 level. An upside breakout above the near-term resistance levels could indicate a move beyond $2,000 level. $2,075 could be used as an upside target if the price resume’s its upside journey.

Another false breakout above the triangle’s resistance could bring a short opportunity and could signal a downside valid breakout. So, you can sell a false breakout with great separation or a bearish engulfing pattern printed on the minor downtrend line. The $1,900 level is seen as a potential downside target.

The material has been provided by InstaForex Company – www.instaforex.com

Source : https://www.mt5.com/forex_analysis/quickview/188376/