JallenForex

GOLD neutral bias | 2 possible scenarios

FX_IDC:XAUUSD   Gold Spot / U.S. Dollar
Neutral bias on Gold at the moment, after respecting the break of a descending trend line & rejecting higher prices for 2 weeks we finally saw strong bullish momentum on Friday that broke back above the trend line .

Now we are anticipating one of the two scenarios marked on the chart to play out.

Scenario 1: Price will break above the nearby resistance zone & 0.768 fib retracement level & then retest the fib level & ascending trend line from above, this is where we would look to enter short trades.

Scenario 2: Price will decline back beneath the ascending trend line & start a decline. If price breaks below the 1281.00 support we would anticipate a bigger downside move. We would enter shorts on a retest of this level from below.

Upside & downside targets are listed on the chart.

Updates will be posted as this trade progresses.