Gold dropped below the major uptrend line signaling that the price is too exhausted to continue to increase. Though, it is premature to talk about a potential corrective phase, a broader decline, as long as the price stays above $1,900 psychological level.
XAU/USD is trading higher at $1,945 level and is almost to retest the broken uptrend line. The breakdown would be invalidated by a strong growth and by a potential jump above $1,960.
That's why we have to wait for a fresh trading signal. Gold moves in a range somewhere between the 1,925 and 1,1970 levels. So, first of all, we need a breakout from this extended sideways movement to confirm a clear direction.
- GOLD Trading Tips
Buy a breakout above $2,000 psychological level with a potential upside target at $2,075 all-time high.
Sell a drop below $1,900 level with a next downside target at $1,800 level.
