XAUUSD: The pattern to $1,640.

With tensions in the Middle East escalating, Gold broke all 1D Resistance levels in the process. The price is currently testing the 1,558 September 4th Top on overbought 1D technicals (RSI = 79.407, ADX = 73.789, Highs/Lows = 41.3928). Assuming the bonds and stock markets don't decline dramatically, we expect traders to take profits on this Resistance level driving the price lower within the 1,535 - 1,515 zone.

If you observe carefully this price action crossed with the RSI, you will find a similar pattern in early June 2019. Gold was rejected on the 1,346 (then) Resistance and found support on a former Lower High symmetrical level (green line). We may see a similar rebound on the current symmetrical Lower High Support. In any case we continue to be bullish on Gold long term towards 1,640 initially.

See how this move was fairly accurately forecasted thanks to the very same fractal analysis we performed in November:





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