The price of gold bounce back at $1,906. Now it is trading at the $1,932 level. Yesterday's bullish engulfing printed on the H4 chart confirms the uptrend, but we still need gold to notch another high to bring a long opportunity.
The selling pressure remains high despite the most recent false breakdown of the major uptrend line. BOC and ECB could bring life on gold starting from today, the high volatility should offer us great trading opportunities. Personally, I will wait for a fresh trading signal. Anything could happen as long as gold stays near a critical support area.
Gold has registered only a false breakdown below the black uptrend line and now it fights to recover after the latest decline. The failure to test the downtrend line again and the $1,900 level could send the rate higher again.
USD's rebound pushed gold down but the decline could be over. The rate may activate a strong upside momentum if it jumps and closes above the Pivot Point ($1,947) level.
- GOLD Trading Tips
Sell a valid breakdown below the $1,900 level with a potential target at the $1,800 psychological level.
Buy if gold jumps to a new high and closes above the $1,949 level. $2,000 remains an attractive upside target. Only a breakout above this obstacle will really confirm a broader bullish run.
