After a significant drop, XAUUSD has been moving sideways in the higher time frames between 1940-1990.
Currently, price has approached to the support zone and is pushed back by this yellow area which is around 1950.
If we take a deeper look at the candles, we can see that the bearish candles are not very strong and the previous bullish candles are much stronger.
Moreover, price is moving inside a symmetrical triangle which may be broken into any direction, upside or downside. The purple descending trend line is the triangle’s upper band (I didn’t mark the lower band of the triangle because I didn’t want to make the chart look too complicated).
Since price is facing two strong support areas and the bullish candles are strong enough to break the triangle’s upper side (the descending trend line), we can expect a rise on price towards the resistance zone around 1970 and in the case of an upside breakout on that zone, the next targets might be 1980 and 1985.
What is your idea about XAUUSD? Feel free to share.
Currently, price has approached to the support zone and is pushed back by this yellow area which is around 1950.
If we take a deeper look at the candles, we can see that the bearish candles are not very strong and the previous bullish candles are much stronger.
Moreover, price is moving inside a symmetrical triangle which may be broken into any direction, upside or downside. The purple descending trend line is the triangle’s upper band (I didn’t mark the lower band of the triangle because I didn’t want to make the chart look too complicated).
Since price is facing two strong support areas and the bullish candles are strong enough to break the triangle’s upper side (the descending trend line), we can expect a rise on price towards the resistance zone around 1970 and in the case of an upside breakout on that zone, the next targets might be 1980 and 1985.
What is your idea about XAUUSD? Feel free to share.