Gold dropped a little in the short term after jumping above a dynamic resistance. The current decline was somehow expected, XAU/USD has come back down to retest the immediate support levels before resuming its growth.
The price of Gold has escaped from a major down channel pattern signaling an upside continuation. Still, we'll have to wait for confirmation before going long again. Anything could happen during the week as the US is to release the ADP Non-Farm Employment Change, Unemployment Claims, ISM Manufacturing PMI, Average Hourly Earnings, Unemployment Rate, and the Non-Farm Payrolls.
Gold could increase if the Unites States economic data will come in worse than expected during the week.
XAU/USD Upside Is Still Intact!
The price of Gold dropped after reaching the 1,823 level. Now it has come back to test and retest the broken broken warning line (WL1) and the weekly pivot point (1,804.28) level. The bias is bullish as long as it stays above the uptrend line and above the mentioned support levels.
Technically, it has shown some overbought signs after failing to approach and reach the channel's upside line. Still, only a valid breakdown through the uptrend line could invalidate further growth.
Forecast!
Jumping and stabilizing above the 1,823 immediate high is seen as a long opportunity. Such a breakout could also invalidate the bearish divergence. The near-term upside target remains at the channel's upside line. The major obstacle stands at the 1,900 psychological level.
The material has been provided by InstaForex Company - www.instaforex.com