Previously we posted that Gold was due for a correction to the upside. Now it has made an impulse move breaking a falling trendline. Below is our current view.
XAUUSD 4h, Over the few days Gold managed to make new low but it went down correctively, we were very cautious with our short positions as we were in the discount area. Yesterday Gold has managed to climbed back up to the premium zone and it stopped at the previous area of BOS. It has also managed to break the upper trendline. the daily candle finished off with a very good bullish volume. We would need to see a strong break on 4H of 1662.71 for the price to continue and test 1687.98. If this area is not broken impulsively, we will be more of a bearish bias today. If there is a rejection of the falling trendline and the equilibrium zone (premium vs discount) we will be looking for longs. As always, trading is reactive not predictive.
XAUUSD 4h, Over the few days Gold managed to make new low but it went down correctively, we were very cautious with our short positions as we were in the discount area. Yesterday Gold has managed to climbed back up to the premium zone and it stopped at the previous area of BOS. It has also managed to break the upper trendline. the daily candle finished off with a very good bullish volume. We would need to see a strong break on 4H of 1662.71 for the price to continue and test 1687.98. If this area is not broken impulsively, we will be more of a bearish bias today. If there is a rejection of the falling trendline and the equilibrium zone (premium vs discount) we will be looking for longs. As always, trading is reactive not predictive.