Gold has decreased a little from the $1,900 but the bias is bullish in the short term. It could move in range in the next few days before deciding a clear direction. The price has printed an Inverse H&S pattern, it has jumped above the neckline signaling further growth.
USD's decline helped the price of gold to recover. A new higher high registered by XAU/USD suggests buying as the rate could go for fresh new highs. The temporary drop seems over, the US data could bring a new upside momentum.
The Final GDP and the CB Consumer Confidence could shake the markets later. Gold is expected to react after these figures will come out.
XAU/USD Another Bullish Momentum?
XAU/USD has found temporary resistance at the $1,900 level and now it has come back to retest the $1,862 level and the red downtrend line, neckline. The false breakdown with great separation below the Pivot Point ($1,865) signals strong buyers around this area.
The price could consolidate, accumulate more bullish energy here above the Pivot Point (1,865) before trying to take out the resistance represented by the upper median line (UML) and by 1,900.
- XAU/USD Trading Tips
A new false breakdown below the $1,862 or any other minor reversal pattern printed on this level could send the rate higher. So, we should search for long opportunities here or wait for a valid breakout above the upper median line (UML) and through the $1,900.
Technically, we'll have a great long opportunity from above the R1 ($1,912) level. The $2,000 psychological level and the $2,075 are seen as upside targets.
