Gold Price Broke Above Trend Line Resistance
ForexCycle.com | Jul 24, 2017 02:12AM ET
XAU/USD recently broke above the support-turned-resistance trend line at 1237 on its daily chart, indicating that the downside movement from 1295.94 had completed at 1204.77 already.
On the 4-hour chart, the gold price ran in a bullish price channel with support at the bottom trend line at around 1241. As long as the price is in the channel, the bullish move could be expected to continue after a minor consolidation and further rise to test the first resistance level at 1258.78 is possible. A break above this level could take price to retest the important psychological level at 1300.
If the gold price failed to break above 1258.78 resistance, the correction pullback could bring price back to the bottom trend line of the price channel. A clear break below the channel support will suggest that the uptrend is complete, then the pair will find support at 1235.18. Below this level will confirm that the downtrend from 1295.94 has resumed, this could trigger another fall towards 1167.
There is an import support trend line on the weekly chart now at around 1167. This level would become the final target of the bearish movement. Strong rebound could be expected after touching this trend line support.
Support levels: 1241 (the bottom trend line of the price channel on the 4-hour chart), 1235.18 (the July 20 low), 1204.77 (the July 10 low), 1167 (the support trend line on the weekly chart).
Resistance levels: 1258.78 (the June 23 high), 1300 (the important psychological level).
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.