It can be observed on the hourly chart for the yellow metal that the bullion broke out of the descending channel pattern to the upside. Due to that reason it can be assumed that more gains are to be scored, as on Thursday morning the commodity price fluctuated just below the 1,280 mark. The 1,280 mark seemed to pose some sort of rather weak but still notable resistance.
This recent breakout, which was initially not expected, occurred due to fundamental reasons. The recent quarrels between the United States and North Korea have created a sort of run to safety. Moreover, it reversed the recent fundamental strengthening of the US Dollar after the JOLTS Jobs Openings release.
This recent breakout, which was initially not expected, occurred due to fundamental reasons. The recent quarrels between the United States and North Korea have created a sort of run to safety. Moreover, it reversed the recent fundamental strengthening of the US Dollar after the JOLTS Jobs Openings release.
Comment:
XAU/USD encounters dominant resistance
As forecasted, the price of the yellow metal reached the 1,290 mark on Friday. However, the surge has most likely ended in the medium term.
The commodity price has reached and bounced off the upper trend line of a dominant ascending channel pattern near the 1,293 mark. The trend line was and still is supported by the various term levels of significance, which are located from the 1,290 to 1,295 levels. In addition, during the bounce off the junior ascending pattern was broken.
Most likely gold price will continue to decline and form a short term descending pattern, which will guide the metal to the support of the dominant pattern.
As forecasted, the price of the yellow metal reached the 1,290 mark on Friday. However, the surge has most likely ended in the medium term.
The commodity price has reached and bounced off the upper trend line of a dominant ascending channel pattern near the 1,293 mark. The trend line was and still is supported by the various term levels of significance, which are located from the 1,290 to 1,295 levels. In addition, during the bounce off the junior ascending pattern was broken.
Most likely gold price will continue to decline and form a short term descending pattern, which will guide the metal to the support of the dominant pattern.
Comment:
Most likely a new trading idea will be created and posted on Tuesday morning.
On Friday morning, an ascending pattern was noticed. It can be mapped by connecting the high levels of early August 8 trading hours and the early high level of August 10. In that way the resistance line can be observed. However, the possible support line of a channel might be pinpointed by setting the parallel line at the August 8 low level.
In the meantime., it can be observed on various charts that there are no notable resistance levels until the 1,290 mark.