XAUUSD in this case, is trying to negate a recent breakdown.
1900 was gold’s previous all-time high.
You can also see where XAUUSD caught a bid around 1900 in August and September.
However, the September 23rd close put the pair below that key level.
But as I’ve cautioned over the last few weeks, any weakness from gold is likely to be short-lived.
The uptrend that began in 2016 is intact, as is the multi-decade series of higher highs and higher lows.
That said, buyers still have some work to do.
First, XAUUSD bulls need to secure a daily close above 1910, at a minimum.
Buyers also need to take out the new trend line from 2075.
Do that, and we could see gold inch higher over the coming weeks.
Whether gold needs another pullback before it can move higher is yet to be seen.
My guess is that we’ll see a few more weeks of consolidation first.
In summary, XAUUSD buyers still have work to do, but pullbacks like the one we’ve seen recently are buying opportunities, in my opinion.
I'm still expecting a small drop to 200ma.
If 1850 fails, look to 1790.
All in all, I continue to like the idea of looking for buying opportunities on pullbacks or bullish breakouts.
1900 was gold’s previous all-time high.
You can also see where XAUUSD caught a bid around 1900 in August and September.
However, the September 23rd close put the pair below that key level.
But as I’ve cautioned over the last few weeks, any weakness from gold is likely to be short-lived.
The uptrend that began in 2016 is intact, as is the multi-decade series of higher highs and higher lows.
That said, buyers still have some work to do.
First, XAUUSD bulls need to secure a daily close above 1910, at a minimum.
Buyers also need to take out the new trend line from 2075.
Do that, and we could see gold inch higher over the coming weeks.
Whether gold needs another pullback before it can move higher is yet to be seen.
My guess is that we’ll see a few more weeks of consolidation first.
In summary, XAUUSD buyers still have work to do, but pullbacks like the one we’ve seen recently are buying opportunities, in my opinion.
I'm still expecting a small drop to 200ma.
If 1850 fails, look to 1790.
All in all, I continue to like the idea of looking for buying opportunities on pullbacks or bullish breakouts.
