XAU/USD is trading at the 1.891 level and most likely it will try to break through the 1.900 psychological level soon. A valid breakout through this level signals further growth. Technically, the outlook is bullish as the major uptrend line is intact.
Gold could profit from USD weakness, USDX's further drop could boost the price of gold. The risk aversion is expected to dominate the market f the COVID-19 crisis leads to new lockdowns and measures that may harm the global economy.
XAU/USD Upside Breakout Favored!
XAU/USD has registered a false breakdown with great separation under the lower median line (lml) of the ascending pitchfork indicating strong buyers in the short-term. I believe that the rate will try to take out the static resistance of 1.900 in the coming hours.
A new higher high, valid breakout above the 1.900 psychological level signals more gains again and could represent a long opportunity.
- XAU/USD Trading Conclusion
You can buy a bullish closure above the 1.900 level with an immediate upside target at the median line (ml). Gold's failure to stabilize under the 1.862 static support signals another leg higher.
The upper median line (uml) and the 2.000 psychological level could be used as targets as well if the rate continues to increase.
