Salzworth

Outlook on XAUUSD: Bullish play seen

Long
FOREXCOM:XAUUSD   Gold Spot / U.S. Dollar
On the weekly time frame, prices are testing a key support level at 1842, where we could see further upside. On the H2 time frame, prices broke above the descending trend line, suggesting a shift from a bearish to bullish order flow. A throwback to its support area at 1824.80, in line with the 78.6% Fibonacci retracement and 61.8% Fibonacci retracement presents an opportunity to play the bounce, with 1888.80 as the resistance target. Prices are holding above the 20 EMA as well, in line with our bullish bias.
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