Gold rallies as the DXY even if the Dollar tries to increase versus its rivals. The price was into a temporary correction in the short term. It remains to see how the yellow metal will react in the next hours.
The price could close above strong support levels, so a bullish pattern could bring us new opportunities. XAU/USD could register sharp movements during the week as the US is to release high-impact data.
The Non-Farm Payrolls is seen as a major event on Friday. Gold is almost to develop a bullish engulfing pattern which could confirm that the buyers are still present. Fundamentally, the yellow metal was somehow expected to increase after the US ISM Manufacturing PMI was reported worse than expected.
XAU/USD Upside Scenario!
Gold failed to stay under the ascending pitchfork's lower median line (lml). Now is located above it and far above 1813.21 weekly pivot point. Stabilizing above the lower median line (lml) may signal further growth in the short term.
As you already know from my analysis, the upside scenario could be invalidated only by a valid breakdown below the lower median line (lml).
Forecast!
A temporary decline was expected after escaping from the Falling Wedge pattern and after reaching the median line (ml). Failing to drop towards the 1,800 and down to the pattern's resistance signal that Gold could come back higher
Retesting the pivot point or the lower median line could bring is new long opportunities.
The material has been provided by InstaForex Company - www.instaforex.com