XAU/USD has printed an ascending triangle on the H4 chart, a valid breakout from this pattern should bring a great trading opportunity. It remains to see the breakout direction. The rate has decreased again in the short term as the greenback tries to resume its upwards movement versus its rivals.
The FOMC Meeting Minutes will move the markets tonight. Gold could register an aggressive fluctuation around this high impact event. Technically, the USDX could still resume its up reversal, so the yellow metal could drop deeper if the USD appreciates.
Gold is trading at $1,891 level and maybe it will retest the $1,900 psychological level before dropping deeper. It has failed to test and retest the black downtrend line signaling high selling pressure.
You know from my previous analyses that, XAU/USD will develop a broader corrective phase if the price drops and stabilizes under $1,862 static support. Only an upside valid breakout from the ascending triangle suggests buying.
- XAU/USD Trading Tips
Short from below $1,848 with downside targets at $1,800 and lower at $1,744 levels.
Long if the rate jumps and closes above the R1 ($1,928) level. The $2,000 and $2,075 are seen as upside targets.
