GOLD Sentiment Has Changed!
- XAU/USD could continue to increase if validates the H&S pattern!
The Gold corrective phase seems over after failing to stabilize under the $1,800 psychological level. Now the metal is trading at the $1,868 level, the next upside target is seen at the $1,900 upside obstacle.
The price has turned to the upside as the USD continues to depreciate versus its rivals. The FOMC failed to help the dollar to recover even if the monetary policy was left unchanged. XAU/USD was into a corrective phase after its major growth but now is almost to validate a reversal pattern which could announce a strong upwards movement.
XAU/USD Inverse Head & Shoulders!
Gold has registered a valid breakout above the median line (ML) of the descending pitchfork and through the $1,862 resistance signaling further growth. Now is pressuring the R1 ($1,868) static resistance, closing and stabilizing above it could bring a long opportunity.
Technically, the price has printed a potential Inverse Head & Shoulders pattern on the H4 chart. As you can see, XAU/USD is challenging the neckline, the red downtrend line, so a valid breakout could validate the reversal pattern.
- XAU/USD Trading Tips
A bullish closure above the R1 ($1,868) level suggests buying with an immediate target at the $1,900 level. We’ll have a larger growth if XAU/USD makes a valid breakout above the upper median line (UML) as well.
The material has been provided by InstaForex Company – www.instaforex.com