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 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.
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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