Gold edges higher taking advantage of USD's sell-off. It's trading at $1,855 level and it aims at $1,862 static resistance. Breaking and stabilizing above this upside obstacle validates a further growth towards the $1,900 psychological level.
Technically, XAU/USD was expected to increase again after developing a Pin Bar, Hammer reversal pattern. The price was into a corrective phase in the short term but the decline seems over, so the rate is expected to move north again.
XAU/USD Upside Reversal!
I've told you in my previous analysis that Gold should come back higher after registering only a false breakdown through the $1,817 static support and below the downside sliding line (SL).
XAU/USD passed above the $1,848 level and now is pressuring the upside sliding parallel line (SL1) of the descending pitchfork and the R1 ($1,855) static resistance. Closing above these obstacles suggests upside continuation.
From the technical viewpoint, a new higher high, jump and close above the $1,862 level brings a long opportunity.
Forecast & Tips!
Buy a bullish closure above 1,862 and use 1,900 as the first upside target. The upper median line (UML) could be used as a target as well. Breaking above the UML signals further growth towards $2,000.
