Gold is trading in the green at 1783.50 level at the time of writing and it could jump higher if the US Dollar resumes its depreciation. The yellow metal was into a strong corrective phase after the last upwards movement.
The price has signaled that the downside movement could be over. Still, we have to wait for confirmation before really deciding to go long again on Gold.
XAU/USD At Support!
XAU/USD has found support on the 61.8% retracement level and on the descending pitchfork's upper median line (UML). The price has plunged after failing to stabilize above the 1,900 psychological level.
It has registered only false breakouts above the first warning line (WL1) of the descending pitchfork, so the decline was somehow expected.
Forecast!
It could increase as long as it stays above the 61.8% level. Jumping and stabilizing above the 50% retracement level could indicate strong growth in the short term.
Dropping and closing below 1761.04 immediate low could really signal a larger drop ahead.
The material has been provided by InstaForex Company - www.instaforex.com