theforexportal

LONG XAU/USD possibility - caution advised though

Long
FX:XAUUSD   Gold Spot / U.S. Dollar
From the middle of November GOLD has been in a well defined channel and the pattern has been consistent.

Price has moved from the top of the channel rapidly down and then moved sideways and up back to the top of the channel and then fallen sharply. Currently price has broken through this channel and has returned to it. If it maintains the pattern, price will drop swiftly from here.

However, all patterns come to an end at some time and should we see gold recover to regain 1150, and we see a hold above 1150 we could see some GOLD strength over the next few weeks.

There is a reasonably high likelihood of this as there has been much speculation recently about a possible correction in dollar strength.

This is one to watch.

A break and hold above the channel could be worth a LONG trade in GOLD and the correction could be significant.