GOLD → Ahead of ATH. How can price react to resistance?

24 Jan

XAUUSD is updating its highs and is gradually approaching ATH. Before the last spurt consolidation or correction may be formed, but chances of reaching ATH are quite high.



Gold price continues its bull run amid uncertainty in Trump's trade policy and expectation of PMI data in the US. Market participants are seeking protection in gold due to global growth fears related to trade conflicts and rate policy. The hawkish stance of the Bank of Japan and dollar weakness also support the metal. However, a pullback is possible on Friday due to profit taking ahead of US GDP data and the Fed decision.
Technically, there is a strong resistance zone at 2790 - istric high ahead. A false break of the resistance may trigger a profit-taking and subsequent correction.

Resistance levels: 2790
Support levels: 2770, 2762, 2750

Before reaching the ATH, the price may form a retest of the support at 2762. But, the main focus is on the historical maximum. The chance of reaching the target is very high, but watch the price reaction to the resistance. False breakdown may provoke a deep correction.

Regards R. Linda!

24 Jan

Dagangan aktif

A rebound from the trend resistance is being formed. After a small correction the market may return to the upward movement with the purpose of retest of resistance (ATH)