Gold trades at 1,727 level and continues to be undecided in the short-term. It moves sideways within a narrow range. A valid breakout from this pattern may bring a great trading opportunity.
The yellow metal could decline again if the US dollar resumes its appreciation versus its rivals. Technically, the current chart pattern could help us to identify a new direction in the short term.
Some positive US data during the week should boost the greenback and may force the price of gold to decline again after the temporary rebound.
XAU/USD Direction To Be Decided!
Gold failed once again to stabilize above the Pivot Point (1,733) signaling a bearish pressure. The rate stays near the S1 (1,720) and right above 1,719 critical support. Dropping and stabilizing under these levels, registering a new lower low, activates a sell-off.
So a downside breakout from this pattern brings a short opportunity. On the other hand, an upside breakout above the R1 and through 1,747 may signal an upside continuation.
Forecast & Tips!
Sell if Gold drops and stabilizes under 1,719 and use the 1,700 and 1,676 as downside targets.
Buy XAU/USD if the price jumps and closes above 1,747. This scenario signals further growth towards 1,770, 1,780, 1,800.
The material has been provided by InstaForex Company - www.instaforex.com