Technical Outlook: In my last Gold Price Outlook we warned that XAU/USD had, “made a strong defense of support into the close of September with the October opening-range set just above uptrend support- we’re on breakout watch. From a trading standpoint, look for downside exhaustion head of the lower parallel IF price is indeed heading higher with a breach above 1791/95 needed to fuel the next leg-up in price.” A near-term breakout last week saw price register an intraday high at 1800 before pulling back with price unable to close above the June trendline / 100-day moving average. We’re on the lookout for possible downside exhaustion on this pullback.
Daily support rests at the 61.8% Fibonacci retracement of the late-September rally at 1751 – we’ll reserve this threshold as our near-term bullish invalidation level with a break below threatening another bout of acerated losses towards key support at 1725/29.
Notes: A closer look at Gold price action shows XAU/USD continuing to trade within the confines of an ascending pitchfork formation extending off the September lows. Initial support rests at 1761 backed by the lower parallel / 61.8% retracement at 1751– losses should be limited to this threshold IF price is indeed heading higher. Initial resistance steady at 1780 backed by 1791/95– a breach of the highs exposing subsequent objectives at the 100% extension at 1809 and a more critical confluence at 1825/29 – a region defined by the 61.8% retracement of the June decline and the July high-day close. Look for a larger reaction there IF reached.
For a complete breakdown of Michael’s trading strategy, review his Foundations of Technical Analysis series on Building a Trading Strategy
– Written by Michael Boutros, Technical Strategist with DailyFX
Follow Michael on Twitter @MBForex
This content was originally published here.
Gold Price Forecast:Gold Price Chart Posts Bullish "Golden Cross" Formation, Will it Rally?Gold prices may continue to…
Key Talking Points:XAU/USD Daily chartThe August reading for US CPI has suggested that inflation may have well peaked,…
Gold prices rose by Rs 253 to Rs 47,100 per 10 gram in the national capital on Tuesday amid supportive global trends,…
Share Great Content for Our Resource Section
MoneyForGold.com is a resource site created for those looking to sell their personal collection of gold - whether it’s jewelry, coins, bars, antiques, etc., anything made from gold can be sold for quick cash. We encourage visitors to signup and share quality “Money For Gold” resources.
Have a question or comment? Email us at: email@example.com