The price of gold tries to get back higher after Friday's sell-off. It's traded in the green at 1,865 but only a new higher high could really confirm further growth. XAU/USD moves sideways in the short term accumulating more bullish energy before approaching 1,900 psychological level.
Gold increased in the early morning as the USD depreciates versus its rivals at the time of writing. Surprisingly or not, the greenback decreased even if the US data has come in better than expected on Friday.
XAU/USD Upside In Cards!
XAU/USD has printed an inverse Head & Shoulders pattern signaling an upside reversal in the short term. The pattern will be validated by a new higher high, by a bullish closure above 1,875 Friday's high.
Breaking and stabilizing above the R1 (1,871) suggests buying with an immediate target at 1,900. Gold's failure to reach and retest the descending pitchfork's median line (ML) signaled strong buyers and a potential upwards momentum.
Forecast!
Passing and closing above the $1,850 high represent a good buying opportunity with a first target at 1,900 and at the descending pitchfork's upper median line (UML).
A larger upwards movement will be activated by a valid breakout through the upper median line (UML).
