Gold is trading sideways in the short term, having reached strong support levels. It has developed a chart pattern, but we'll have to wait to see the breakout direction. The pressure is still high as long as the US dollar index increases or as long as it stays higher.
Personally, I would have expected a potential strong growth today after the poor US data, but it seems that the sellers are very strong. DXY's potential growth could bring more sellers here on Gold.
XAU/USD Range Movement!
Gold has printed a triangle and it continues to move sideways. An upside breakout from this pattern and through the 50% retracement level could bring a new long opportunity and could validate a larger growth.
Dropping below the immediate uptrend line could signal a decline towards the descending pitchfork's upper median line (UML). Making a new lower low could really announce a larger drop.
Trading Conclusion!
Selling Gold here is risky, so we have to wait for a long opportunity. An upside breakout above 1,800 could bring us a great buying signal with an upside target at the warning line (WL1).
The material has been provided by InstaForex Company - www.instaforex.com