Gold is back above the $1,900 psychological level signaling an imminent upside breakout. The USDX's decline and the global risk, COVID-19 second wave fear helps the gold price to jump higher.
The yellow metal could become very attractive for investors and traders in the upcoming weeks and months, that's why the price of gold could start another leg higher. Technically, another higher high and a valid breakout above the immediate resistance levels could bring a long opportunity.
Gold failed to reach and retest the $1,862 static support, triangle's downside line, signaling a strong bullish pressure. A valid breakout above the downtrend line, median line (ml), and above the R1 ($1,927) represents a strong bullish signal.
Only a false breakout with great separation above the mentioned resistance levels or a major bearish engulfing could invalidate a new leg higher.
- GOLD Trading Tips & Conclusion
Buy a bullish closure above the R1 ($1,927) level with a first upside target at the upper median line (uml) of the red ascending pitchfork, around the $2,000 psychological level. $2,075 stands as a major upside target if XAU/USD will resume its long-term uptrend.
A selling opportunity will appear only if the price of gold drops below $1,862 and makes a valid breakdown below the lower median line (lml).
The material has been provided by InstaForex Company - www.instaforex.com