Gold has managed to rebound despite the fact that the US dollar continues rising versus other major currencies. As mentioned in the previous analysis, XAU/USD could still increase as long it stays above the $1,850 level.
The yellow metal could edge higher after tomorrow's US Presidential Election. Also, the economic calendar is filled with high impact data and events this week, so the fundamentals could push the rate higher.
Technically, the price failed to reach and retest the channel's upside line signaling strong buyers in the short term. I believe that only a drop below the $1,850 level will suggest selling and will validate a broader drop.
- XAU/USD Trading Tips
Sell from below the $1,850 with an immediate downside target at the $1,800 psychological level.
A great buying opportunity will be validated by an increase and jump above the $1,933 former low. So, we could go long (buy) again if the price will reach the $1,935 - $1,940 area. The $2,000 and the $2,075 could be used as upside targets.
