So what are we looking for in the week ahead. We would expect this to open with some movement towards the 1820 level, this level is key for us. Breaking here and closing above it will potentially resume the momentum we saw last week taking us to target the 1840 levels. However, if we see this resist at the 1820-25 level its likely giving Gold an opportunity to target that lower again.
We can see that we’ve broken out of the potential channel and the retest is complete. The concerning thing for us here is that the breakaway has been weak! Hence, we feel that if this tests the 1795 level again and breaks back inside the channel, we could see a problem for Gold bulls.
The key areas:
We’re unbiased this week, we’ll wait for the market to open and give us a clues as to what is to come. We'll share and update as we usually do throughout the week ahead.
As always, trade safe.