Gold edges higher and accelerates its bullish movement after a minor accumulation right above the $1,800 psychological level. The precious metal has got stuck sideways in the short term trying to recapture more bullish energy before reaching fresh new highs.
The yellow metal climbs higher also because the US dollar resumes its corrective phase versus its major rivals. The gold price is expected to reach new highs as the breakout above the $1,800 level was validated.
- XAU/USD Range Breakout!
Gold is trading at $1,822 level, right above the R1 ($1,821) static resistance. A valid breakout above this level will confirm a further growth at least till the 50% Fibonacci line of the black ascending pitchfork.
Technically, the breakout from the minor range, above the $1,818 former high, and above the upper median line (uml) of the minor descending pitchfork suggests an important upside movement.
- GOLD Trading Tips
You can buy a valid breakout above the R1 ($1,821) level, if the gold price closes and stabilizes above this static resistance. The first target is seen at the 50% Fibonacci line, this dynamic resistance has stopped the price in the past, while the major upside target is seen at the upper median line (UML) of the ascending pitchfork, around the R2 ($1,861) level.
The critical support remains at the median line (ML) of the ascending pitchfork, only a drop below this level will invalidate a further increase and will bring a short opportunity.
