GOLD edges higher reaching $1,963.92 today. USD's weakness helped the yellow metal to jump higher after the last retreat. Also, the failure to reach the $1,900 level signaled strong buyers around this downside obstacle.
Technically, the rate is bullish and it should approach new highs soon. Gold has tested the buyers by challenging the major uptrend line. The false breakdown followed by the strong bullish momentum suggests buying.
I've said yesterday that the gold price should climb higher after Tuesday's false breakdown, bullish engulfing. Today's aggressive bullish run above the Pivot Point ($1,947) indicates further growth to the R1 ($1,978).
Gold should take out the minor downtrend line to be able to resume its bullish momentum. The current rally signal strong buyers but only a valid breakout above the near-term dynamic resistance, downtrend line, and above the R1 ($1,978) rally suggest buying and confirm a broader upside movement, way above 1.2.
- XAU/USD Trading Tips
Buy a valid breakout above the $1,978 and above the minor downtrend line. You should place your Stop Loss below the former low at $1,906 and the Take Profit at the $2,075 all-time high.
Sell a valid breakdown below the major back uptrend line and a drop below the $1,900 static support.
